China-focused hedge funds gave returns of 12.71% for the full year 2012, outperforming both the hedge fund aggregate, up 6.97%, and the Shanghai Stock Exchange Composite, up 4.40%.
Historically, China-focused funds have shown significantly lower volatility compared with their equity benchmark, 21.24% versus 28.93%.
Estimated assets under management for China-focused funds declined by 9.1% in 2012 to $15.6 billion. Investor flows have been negative and persistent.
The rate of