Business Maverick: Top Hedge Fund Gains 400% as China Battles Commodity Prices

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When China’s government started paying more attention to surging commodity prices a few months back, hedge fund manager Richard Lee’s trading models told him a correction was imminent.

Inventories of reinforced steel bars, a key construction material, started rising before the arrival of the summer slow season, and China’s State Council had warned repeatedly on price increases, he said in an interview.“Our models were flashing strong signals of a reversal,” said Lee, the general manager of Shanghai-based

David Harding’s Winton Group, one of the most prominent global names in the space, has also seen a boost. Local assets under management surged 50% this year to 6 billion yuan, according to a person with knowledge of the matter, helping make the fund aamong dozens of international names jostling for attention in China’s crowded hedge fund market.

CTAs tripled product launches in China through June 20 compared with last year, according to Shenzhen PaiPaiWang Investment & Management Co. Focused on riding trends in financial futures, the funds often perform better amid volatility their models are designed to capture.than anywhere else, Lee also shorted hog futures in May amid pork price declines and rising supplies, he said.

 

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