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US hedge funds far outperformed local rivals in China in 2023

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US hedge funds far outperformed local rivals in China in 2023

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Assets managed by the Chinese operations of Bridgewater and Two Sigma surged as the US hedge funds outperformed their local peers during the market turbulence of last year.

Bridgewater China Investment Management, the local arm of the world’s largest hedge fund, quadrupled its assets under management to more than Rmb40bn ($5.6bn) at the end of last year from two years ago, while Two Sigma China almost doubled its assets over the same period, according to people close to the companies.

The influx of local investors came as the global hedge funds reported double-digit returns in one of the world’s worst-performing markets while local asset managers struggled to make ends meet.

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Bridgewater’s flagship All Weather Strategy China Private Investment Fund, which targets wealthy individuals with a minimum investment of Rmb5mn ($700,000), yielded 10.2 per cent last year, according to a distributor of the fund. People close to Two Sigma said the quantitative trading giant’s three China funds reported a more than 16 per cent return over the same period.

In contrast, the benchmark CSI 300 index fell 11.7 per cent in 2023 as China’s post-pandemic economic recovery struggled to gain traction following an unprecedented real estate meltdown.

While many Chinese investment firms sought to emulate Bridgewater’s success by tapping alternative asset classes such as commodities and derivatives, they had limited success. Public records show China’s 771 locally owned multi-strategy hedge funds generated an average return of 2.8 per cent last year.

The outperformance of the likes of Bridgewater and Two Sigma in the Chinese market highlights the potential for global asset managers to profit from the world’s second-largest economy despite its lukewarm growth outlook and geopolitical tensions between Beijing and western capitals.

“Global hedge funds know how to navigate a bear market as they have been through numerous ups and downs,” said Zhang Zhongyu, vice-president at Shenzhen Rongzhi Investment Consultant, which reviews local hedge funds. “Most Chinese funds only know how to make money in a bull market.”

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In a roadshow this month with Chinese investors, Bridgewater said it beat the local market by diversifying into commodities and bonds whose resilient performance helped offset losses in its stock portfolio, according to minutes of the meeting seen by the Financial Times.

Public records show multiple Shanghai- and Shenzhen-listed gold ETFs listed Bridgewater All Weather Strategy China Private Investment Fund as one of the top 10 investors in the first half of last year.

A BCIM executive said in the roadshow that the fund’s commodities investment, led by gold ETFs that generated double-digit returns last year against a slump in the equity market, was the biggest contributor to its overall performance.

In the meantime, most local asset managers, including industry heavyweights once critical of their western peers, have suffered heavily from the market meltdown. Li Bei’s flagship Banxia Macro Fund plunged 20.4 per cent over the past 12 months. The Shanghai-based hedge fund manager is known for her successful bets on commodities in the wake of the coronavirus pandemic outbreak and her dismissal last August of foreign investors as “a bunch of aimless flies” following a sharp sell-off.

Bridgewater China’s strong performance has prompted the fund to expand its footprint in one of the world’s largest wealth management markets just as other US asset management giants such as Vanguard are walking away.

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Public records show BCIM issued a record 56 investment products last year, up from 30 in 2022 and one in 2018, when the firm began business in China.

An official at China Merchants Securities, which handles sales of the All Weather Strategy funds, said demand was “so strong” that only existing clients could make additional purchases.

“It is difficult to find an investment product that did well in a bad market,” said the official.

Despite the headway made by hedge fund giants, traditional US asset managers had a hard time figuring out the Chinese market. Index fund manager Vanguard closed its China office last November after its partnership with Jack Ma’s Ant Group fell apart. BlackRock China made losses on all of its eight stock-focused funds last year as the world’s largest asset manager struggled to profit from a market driven by the whims of government policy.

“Certain funds that have a lot of money and are fairly aggressive can go in and try to make some money within the China market on a small scale,” said Andrew Collier, an analyst at GlobalSource Partners who advises US investors on Chinese investment. “That doesn’t mean other [US] funds with a more established approach could follow suit.”

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Thunderstorms, heat and wind will hamper efforts to contain Colorado wildfires

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Thunderstorms, heat and wind will hamper efforts to contain Colorado wildfires

The Aspen Acres Fire burns on Friday in Rye, Colo.

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Thunderstorms with high winds on Sunday could hamper efforts to contain a massive wildfire that has scorched parts of southern Colorado.

The Aspen Acres Fire, which is burning south of Colorado Springs across Pueblo and Custer counties, has grown to more than 86,000 acres. It began nearly a week ago and is 13% contained, officials said on Sunday morning.

Authorities have ordered people to evacuate or to prepare to evacuate across counties including Custer, Pueblo, Huerfano and Fremont.

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Scattered showers and thunderstorms could hit south central and southwest Colorado on Sunday, according to the National Weather Service.

Officials and forecasters say the rain could be beneficial for firefighting but are concerned it could lead to road damage in burned areas and cause flash flooding.

“The main threats from storms will be gusty outflow winds up to 50 mph and lightning,” the NWS office in Pueblo said.

Red flag warnings and air quality alerts have also been issued across the state, with the Colorado Department of Public Health and Environment on Sunday warning residents to limit time outdoors because of heavy smoke.

Other wildfires are burning in the state, including the Ferris Fire in southwest Colorado that has grown to more than 42,000 acres and is 7% contained as of Sunday afternoon. The Gold Mountain Fire, which is also in the southwest portion of the state, has grown to more than 25,000 acres and is 0% contained as of Sunday.

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A memorial service was held on Sunday for three firefighters who were killed battling wildfires on the Colorado-Utah border on June 27: Emily Barker, Sydney Watson and Nick Hutcherson.

The firefighters, along with two others, were involved in a “burnover incident,” which happens when firefighters are overtaken and have to shelter as best they can while a fire passes directly over them, according to the Department of Interior. Two firefighters survived and were treated for burns.

Colorado Gov. Jared Polis ordered flags to fly half-staff in honor of the deceased firefighters.

“These three brave heroes ran towards the flames, put themselves in harm’s way, and gave the ultimate sacrifice to protect Coloradans, our communities and our families,” Polis said in a social media post on Sunday.

Another fire across the border in southern Utah, the Babylon Fire, has grown to more than 90,000 acres and is O% contained as of Sunday afternoon. It is expected to be hot and dry through Monday, with very little humidity, officials said, making conditions challenging for containment.

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At least 25 people die in US as record heatwave scorches swaths of country

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At least 25 people die in US as record heatwave scorches swaths of country

At least about two dozen people have died amid the perilous climate crisis-driven heatwave that has scorched swaths of the US with record temperatures.

As a huge heat dome sits over the county’s eastern half, extreme heat gripped millions of people in the days leading up to the US’s semiquincentennial on Saturday – and beyond it. More than 20 states experienced have reported stifling temperatures more than 100F (38C), marring celebrations. And more than 140 million people remained under active heat alerts across the US on Sunday.

Officials in New Jersey believe the extreme heat was a factor in the deaths of 22 people across 10 counties there, mostly in central and northern parts of the state. Many of the individuals were found in homes with no air conditioning, outside their residences, on the street and in parked cars, according to officials.

The first of those deaths occurred on Thursday, and the ages of the deceased in question mostly range from their mid-30s to their 80s. Preliminary findings cause investigators to believe the deaths are heat-related, though the chief state medical examiner for New Jersey would later determine the exact cause of death for each.

“This is not a typical summer heatwave,” the New Jersey department of public health said in a statement. “This type of heat can quickly become life-threatening to humans and to animals of all ages.”

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The National Weather Service (NWS) has said cool air from the north in the coming days is going to lower some of the most extreme temperatures in the region, including New Jersey. The Fifa World Cup final is scheduled to be held in the New Jersey city of East Rutherford on 19 July.

Elsewhere, a heat-related death was reported in Cook county, Illinois, Natalia Derevyanny, a government spokesperson, told NBC News. The cause of that death was recorded as organic cardiovascular disease – with heat stress as a contributing factor.

Hinds county in Mississippi reported the death of 74-year-old Mitchell Ray Cooley due to heat exposure on Thursday, state officials said. Cooley had been reported missing, and his body was found the next day behind a gas station, the county coroner said in a statement.

People watch the Sail 250 parade of ships at Liberty State Park in Jersey City, New Jersey, on 4 July. Photograph: Adam Gray/Reuters

“Mr Cooley suffered from a medical condition that impaired his judgment,” the coroner’s office said. “Based on the investigative findings, scene examination, and subsequent evaluation, the cause of death has been determined to be weather-related heat exposure. At this time, there is no indication of foul play.”

Meanwhile, on 27 June, Martha Irene Van Egmond, 83, died in Bolton, Mississippi, after falling in her garden. When her husband, Rick, tried to help her up, he fell too. The couple were unable to get up and spent hours in the heat.

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Rick Van Egmond said he and his wife called out for help, and eventually two men from a nearby apartment complex came – but it was too late for Martha. She died surrounded by flowers, doing what she loved, he said to local news outlet WAPT.

Jeramiah Howard, Hinds county’s chief death investigator, attributed her death to the heat combined with her age, WAPT reported.

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A person cools off with water from an open fire hydrant during a heatwave on the West Side of Chicago, Illinois, on 2 July. Photograph: Octavio Jones/AFP/Getty Images

As Donald Trump spoke during rain-dampened celebrations in Washington DC on Saturday, emergency services there had treated 51 people with heat-related issues as of 8pm ET, with 12 taken to nearby hospitals, according to local emergency response officials.

Other events scheduled for Saturday – including the Independence Day parade in DC – were cancelled amid the blistering heat. Among other weather-related disruptions, Trump’s so-called Great American State Fair on the National Mall also temporarily closed down on Friday after reports that 44 visitors had been treated for heat-related illnesses.

The worst of the heat started moving out of the US’s north-east and midwest regions by Sunday, shifting farther south into the mid-Atlantic and south-eastern parts of the country.

But scientists warn that heatwaves with extreme temperatures are indications that the world must lower the greenhouse gas pollution driving the global climate crisis.

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The NWS is urging the public to avoid heat sickness by drinking plenty of fluids as well as staying out of the sun and in air-conditioned environments. Officials have also asked people to check on relatives and neighbors.

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Paul Pelosi in hit-and-run in California, car left with major damage, authorities say

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Paul Pelosi in hit-and-run in California, car left with major damage, authorities say

Rep. Nancy Pelosi, D-Calif., and her husband Paul arrive at the funeral services for Clive Davis at Central Synagogue in New York, Monday, June 29, 2026.

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LOS ANGELES — The husband of former House Speaker Nancy Pelosi was involved in a hit-and-run in California that left a parked car with “major” damage authorities said Saturday, and he could face misdemeanor charges.

Paul Pelosi was driving his brown convertible Friday in Yountville, a town in the heart of wine country, when he struck a legally parked car on the side of the road, briefly stopped and then drove away, the Napa County Sheriff’s Office said in a statement. No injuries were reported.

A witness saw the collision and called 911. Shortly afterward sheriff’s deputies found Pelosi with damage to the front of his car on a road roughly a quarter of a mile away. He reportedly told officers he knew he hit something but was not sure when or what caused the damage.

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Pelosi, 86, did not have any alcohol in his system, according to the statement. The sheriff’s office referred him to the Department of Motor Vehicles for a process to determine whether he may continue to drive — something that officials say is common for older drivers.

Pelosi was not arrested, and because no one was injured, the sheriff’s office recommended a misdemeanor charge for fleeing the scene of an accident.

A staffer for Nancy Pelosi did not immediately respond to an email seeking comment.

Paul Pelosi pleaded guilty in 2022 to misdemeanor charges of driving under the influence in Napa County and was sentenced to five days in jail and three years of probation. However, he served only two days in jail and received good conduct credit for two other days, leaving just one day to serve in a work program at the courthouse.

As part of his probation, Pelosi was required to attend a three-month drinking driver class and install an ignition interlock device, which forces drivers to provide a breath sample to prove sobriety before the engine will start. He also was ordered to pay about $5,000 in victim restitution for medical bills and lost wages, along with nearly $2,000 in fines.

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