Bets on China, AI, Japan drove regional hedge fund gains
Asia funds rose 12.1 last year, best annual figure since 2009
Keywise and First Beijing jumped 71 and 42 respectively

HONG KONG, Jan 16 Reuters Asian hedge funds delivered their strongest returns in 15 years last year, capitalising on market volatility, winners in China39;s wobbly economy and opportunities in artificial intelligence AI.

The HFRI Asia with Japan Index, which tracks hedge funds that mainly invest in the region, rose 12.1 last year its best annual growth since 2009. HFR is one of the largest global hedge fund data platforms.

2024 was a volatile year for most investors amid capital flows from the region into stronger dollar assets, deflation risks in China, and a massive unwind in yenfunded carry trades.

While hedge funds navigated last year39;s turbulence, investors expect trading in Asia to remain challenging in 2025 amid geopolitical uncertainty and Donald Trump39;s second U.S. presidency.

Many Chinafocused funds beat the benchmark China indexes by picking the winners in the country39;s economic transformation, sources within the funds and investors told Reuters.

Hong Kongbased Keywise Capital, which manages 2 billion, saw its flagship Mega Trend strategy rise 51 in 2024, thanks to its bets on Gen Z consumption such as retailer Miniso and power supply companies such as China Yangtze Power, which benefited from AI demand.

Keywise39;s another techfocused Penguin development fund book a 71…