How do Asian hedge funds outperform the market? Just bet on AI, Japanese and US stock markets.

Smart Finance APP noticed that,

However, artificial intelligence-related stocks have driven a return of nearly 36% for the CloudAlpha Technology Fund and a 25% increase for the Sino Vision Greater China Market Neutral Fund in the past six months. Insiders revealed that Japan has been a major driving force behind the 13% increase in the Panview Asia Stock Fund.

The Sino Vision Fund, with a scale of 690 million US dollars, has concentrated its artificial intelligence bets in Taiwan. Its Hong Kong management company, Grand Alliance Asset Management Limited, stated that its bets on semiconductor and hardware suppliers for artificial intelligence data servers and data centers have paid off. The company stated that these Taiwanese companies had not previously received attention from analysts and international investors, but are now starting to attract global attention.

An insider said that the profit bets in the field of artificial intelligence are mainly in the United States. This hedge fund is known for its concentrated and bold investments and is currently recovering from a 37% loss last year.

Ken Tonkinson, CEO of Keystone Investors Pte, based in Singapore, confirmed that the hedge fund under the company's umbrella has risen by 9.7%. The company's assets are close to 1.3 billion US dollars. The fund, established 15 months ago, has made profits by going long and short in the Greater China region and globally. Trading in semiconductors, software and entertainment companies, as well as stocks related to consumers, real estate, and healthcare, have contributed to the rise in the stock market.

Artificial intelligence, Japan, and the United States have helped drive the performance of Asian hedge funds in the first half of the year.

Inspired by the improvement of Japanese corporate governance, Ryan Thall, former partner of Goldman Sachs Group, discovered opportunities in overlooked small companies through Panview. The insider said that most of the company's profits in Japan come from technology hardware stocks, but the company is not very interested in future development space.

According to insiders, the China Focus Master Fund has surged by 12% in the past six months. Its management company, Trivest Advisors Ltd., increased its holdings of US-listed stocks by 56% in the first quarter of this year. The company was previously known for its savvy Chinese stock traders. Partial growth may be the result of stock price increases rather than buying more stocks. However, according to its latest filings submitted to regulatory agencies, it increased its holdings in Meta Platforms (META.US), NVIDIA, and Microsoft stocks.

One of the top-performing companies last year continues to generate substantial returns. The hedge fund under Ariose Capital Management rose 13% in the first half of this year, following a nearly 49% surge in 2022.

Factorial Management Limited, owned by Barun Agarwal's Hong Kong-based company, has maintained a streak of consecutive profits since its establishment in 2012. In the first half of this year, their pan-Asian multi-strategy hedge fund rose by 9.4%. "Credit has been the major driving force, especially long-term investments in various Indian credits."

In addition, equity investments including initial public offerings (IPOs), as well as bulk transactions, corporate activities, and arbitrage trading in the Greater China region, Australia, Japan, Southeast Asia, India, and the Middle East, have also contributed to the profits.