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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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A dead woman’s key fob and two grisly crime scenes: How the Utah triple-murder suspect was tracked across state lines | CNN

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A dead woman’s key fob and two grisly crime scenes: How the Utah triple-murder suspect was tracked across state lines | CNN

As investigators raced to find the person responsible for three killings in rural Wayne County, Utah, they used automated license plate readers and a victim’s own vehicle key fob to track their suspect – a man police said has no connection to the victims or the region that is known for its awe-inspiring landscapes dotted with quiet, small towns.

It would take just hours to pin down the suspect in a search that spanned multiple states in the Four Corners region of the Southwest – ending early Thursday with the arrest of 22-year-old Iowa resident Ivan Miller, who is charged with three counts of first-degree, aggravated murder, officials said.

Miller was taken into custody in Colorado, officials said –– more than 350 miles from where the bodies of three women were found at two locations in Utah.

Miller’s first court appearance is scheduled for Friday afternoon in Archuleta County, Colorado. He will be represented by a public defender, court records show.

The victims were identified as Margaret Oldroyd, 86; Linda Dewey, 65; and Natalie Graves, 34, Utah’s Department of Public Safety said.

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Dewey and Graves, an aunt and niece who’d gone for a hike together, were found dead near a trailhead just outside the town of Torrey, Utah’s DPS said. The women’s bodies were found by their husbands who grew concerned when the pair didn’t return from their hike, Utah Highway Patrol spokesperson Lt. Cameron Roden said at a news conference Thursday.

Investigators found Oldroyd’s vehicle at the trailhead and deputies went to her home in nearby Lyman, where they discovered her body, Roden said.

After his arrest, Miller told investigators he spent a night in Oldroyd’s back shed and snuck into her house while she was out, according to an indictment filed in court Thursday. Miller “waited for her behind a door and shot her in the back of the head … while she was sitting down to watch television,” the indictment said.

Miller made efforts to clean up the scene before dragging the 86-year-old’s body to a cellar under the shed, where she was later found, the indictment read. He then stole her Buick Regal and traveled to the trailhead, investigators said. Miller told investigators “he did not like the car and wanted to find a different vehicle,” the indictment said.

At the trailhead, Miller said he saw Dewey and Graves get out of a white Subaru and shot them both, according to the indictment. Miller told investigators he stabbed one of the women in the chest multiple times because she was still moving, the document said.

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He then admitted dragging their bodies into a ditch, where the two were discovered by their husbands, the indictment said.

Officials said Miller ditched Oldroyd’s car at the trail and drove away in the white Subaru. Miller also admitted stealing the women’s credit cards and using one to pay for gas, according to documents.

Investigators used a network of license plate scanners to track the Subaru “through southern Utah into northern Arizona and eventually into Colorado,” Roden said.

“Colorado law enforcement located the vehicle abandoned in Pagosa Springs, Colorado, and after a brief search, took the individual into custody without incident,” Utah DPS said Thursday.

One of the husbands was also able to track the car’s location using an app that monitored the vehicle’s key fob, investigators said. Just after 9 p.m. Wednesday, the key fob appeared to be in Farmington, New Mexico — about two hours southwest of where Miller would later be taken into custody, according to the indictment.

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Miller had a handgun and a large knife in his possession at the time of his arrest, according to police in Pagosa Springs.

Miller told investigators he killed the women because he needed money, according to the indictment. “Miller confessed that it ‘had to be done’ but he did not like to do it,” the document reads.

Miller, who lived in Blakesburg, Iowa, set out on a cross-country road trip about two and a half weeks ago, his brother, who spoke with The New York Times on condition of anonymity, said.

Miller’s brother said the two stayed in contact during the trip, and Miller mentioned crashing his truck after hitting an elk, according to the Times.

The brother was concerned about how Miller was traveling around after that and offered to bring him back to Iowa, which he declined, the Times reported.

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After his arrest, Miller told officials that he had been staying at a hotel in the area for a few days after he hit an elk with his truck, which he then sold to a tow truck company, according to the indictment.

On Thursday, shaken residents across Wayne County placed pink ribbons around trees and fences in their communities as they remembered the three women who were killed in apparently random attacks carried out by a stranger.

“We wanted to honor our friend and neighbor,” Mary Sorenson, who put up ribbons around Lyman, told CNN affiliate KSL.

The Wayne County School District announced it would be closed for the rest of the week and would “have counselors in place to support students when we are back in session next week.”

In a statement Thursday, Torrey Mayor Mickey Wright described the multiple homicides as a “heartbreaking moment for our small, close‑knit community.”

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“Our community is strong. In the coming days, we will support one another, check on our neighbors, and ensure that those affected by this tragedy are not alone,” Wright said. “We stand together today — in grief, in compassion, and in solidarity.”

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Iran’s fight for survival / The widening war / Trump’s nebulous goals : Sources & Methods

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Iran’s fight for survival / The widening war / Trump’s nebulous goals : Sources & Methods
The U.S.-Israeli war with Iran is spilling out across the region. What are the goals? And how does it end?Host Mary Louise Kelly talks with International Correspondent Aya Batrawy, based in Dubai, and Pentagon correspondent Tom Bowman, about the U.S.-Israeli war with Iran. Six days of war have turned the middle east upside down, and it’s still not clear how the U.S. will determine when its objectives have been accomplished.Recommended Iran reading:Blackwave by Kim GhattasAll the Shah’s Men by Stephen KinzerPrisoner by Jason RezaianPersian Mirrors by Elaine SciolinoListener spy novel recommendation: Pariah by Dan FespermanEmail the show at sourcesandmethods@npr.orgNPR+ supporters hear every episode without sponsor messages and unlock access to our complete archive. Sign up at plus.npr.org.
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Map: 4.9-Magnitude Earthquake Shakes Louisiana

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Map: 4.9-Magnitude Earthquake Shakes Louisiana

Note: Map shows the area with a shake intensity of 4 or greater, which U.S.G.S. defines as “light,” though the earthquake may be felt outside the areas shown.  All times on the map are Central time. The New York Times

A light, 4.9-magnitude earthquake struck in Louisiana on Thursday, according to the United States Geological Survey.

The temblor happened at 5:30 a.m. Central time about 6 miles west of Edgefield, La., data from the agency shows.

U.S.G.S. data earlier reported that the magnitude was 4.4.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

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Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Central time. Shake data is as of Thursday, March 5 at 8:40 a.m. Eastern. Aftershocks data is as of Thursday, March 5 at 10:46 a.m. Eastern.

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