SHANGHAI, Dec 30 Reuters Chinese fund managers who made big bets on energy companies are celebrating a year that was brutal for many of their peers.

Huang Hai, who manages three funds for Wanjia Asset Management, far outperformed the market by wagering on energy stocks such as CNOOC , China Shenhua Energy and Shaanxi Coal.

His Wanjia Macro Timing Mixed Fund was the best performing balanced fund this year, reaping a return of 48.4. That compares with a 22 loss in the bluechip CSI300 Index.

Instead of chasing hot stocks, we chose the carefully planned battle of contrarian investment, Huang said on Wanjia39;s website. Looking ahead, we remain cautiously optimistic toward China39;s stock market, where structural opportunities abound.

He said upstream resources companies would continue to benefit from an ongoing rebalancing from growth to value, and his fund increased exposure in the third quarter to consumer, finance and construction stocks, which he said were undervalued.

Chinese oil gas companies and coal miners have benefited from a surge in global energy prices this year that was partly triggered by the RussiaUkraine conflict.

Heavy exposure to the sector also made Zhang Yuan China39;s best performing equity mutual fund manager this year, according to ranking by Refinitiv Lipper.

Zhang39;s Yingda StateOwned Enterprise Reform Equity Fund achieved a return of 31 in 2022, far ahead of its immediate follower with just a 12 return.

Energy companies including Shaanxi…