The Orchid fund wrote in its letter that the fund reduced its exposure, or the difference between long and short investments, at the beginning of January and added back as the market fell and valuations declined. Orchid Asia Group Management has $2.9 billion firm-wide and manages hedge funds and private equity funds.
Truston Falcon Asia Fund, which uses a long-short Asian equities strategy, fell 2.5 percent last month, although has regained some losses and is up approximately 2 percent so far in February, according to Heejung Chang, the fund’s portfolio manager. Chang manages the fund at Truston Asset Management Singapore, a division of Korea-based Truston Asset Management Co., which had $7.3 billion in assets as of October.
“Given the uncertain macro outlook, high market volatility, and weakening investors’ confidence, we further reduced our unhedged positions, especially in China,” the Truston fund wrote in its letter.
Open Door Capital Group, a Shanghai-based firm founded in 2011 by Chris Ruffle and Ke Shifeng, said in its letter to investors that the decline in China’s CSI Index was “an embarrassing opening for the new year.” China’s gross domestic product in 2015, the lowest in 25 years, and international trade numbers "cannot provide any positive support for the capital market."
Representatives at Orchid, Athos and Factorial declined to comment, while Open Door did not respond to requests for comment.