HONG KONG, Aug 20 Reuters Hong Kongbased hedge fund Strategic Vision Investment SVI has wound down its main Value Multiplier Fund which invested in Chinese equities, three sources said.

SVI liquidated the holdings of the longshort fund at the end of July and is returning its external capital to investors, the sources, who are directly aware of the developments, said.

The hedge fund took the step as it sees limited room to expand its Chinafocused longshort investment strategy, given geopolitical tensions and shifts in the investment landscape in the region, one of the sources said.

SVI declined to comment.

Founded by Ken Xu as BosValen Asset Management in 2014 and rebranded as SVI six years later, the firm managed more than 1 billion in assets last year.

It now plans to use its own capital and investment from new strategic partners to form a multifamily office, or an entity to manage the wealth of rich families, one of the sources said.

The Value Multiplier Fund managed more than 400 million at its peak and returned a loss of 1.1 last year, according to a source familiar with the fund39;s performance. The source did not say when the fund hit its peak in assets but added it had generated an annualised return of 28 since 2020.

The Eurekahedge Greater China Hedge Fund Index, which captures the performance of hedge funds in the region, was down 8 last year.

The liquidation of Value Multiplier Fund39;s positions comes at a time when Chinese funds face mounting pressures…