Investors, advisers flock to ‘buffer’ ETFs as markets sell off https://t.co/mMU9Yk7XDo
নিম্নমুখী বাজারেও মিউচুয়াল ফান্ডে ভরসা #mutualfunds #sharemarket #Nifty https://t.co/oRTSy5vQnR
From the @WSJ article, “The Week the Smart Money Got Whipsawed by the Market: Hedge funds usually like to take advantage of stock-market unrest. Lately, they have helped spread it instead.” #markets https://t.co/SFYAtfBcVe
Asia-focused hedge funds have outperformed their U.S. counterparts during the recent market selloff, driven by the relative strength of Chinese equities. According to data from Morgan Stanley, Asia hedge funds recorded an average decline of 0.71% in March, compared to a 2.6% drop for U.S.-focused funds and a 1.7% decline for globally-invested hedge funds. The performance gap highlights a shift in investor sentiment, with concerns over a potential U.S. recession and the impact of Trump administration tariffs prompting increased allocations to Asian markets. Chinese stocks, in particular, have attracted significant inflows, with estimates suggesting that hedge fund purchases of Chinese equities have nearly doubled since September 2024. Meanwhile, Hong Kong's Hang Seng Index has risen approximately 20% since January. BNP Paribas noted that Asia-focused long/short equity strategies, especially those targeting single-country markets, have performed well, with year-to-date gains of 2.8%. In contrast, U.S. markets have faced heightened volatility, with the Nasdaq suffering a 4% drop on March 10, driven by hedge fund risk aversion and unwinding of positions. Additionally, hedge funds are preparing to resume short-selling in South Korea as restrictions lift at the end of March.
