Chinus Fund Best Performing Emerging Market FoHF in 2019

We are pleased to announce that the Chinus Fund was the best performing emerging market fund of hedge funds in 2019.  

We also measure ourselves against the global universe of fund of hedge funds, which include funds that have US, global, and other market focuses.  The Chinus Fund ranked #3 out of all fund of hedge funds globally out of 389 funds.  This marks the seventh time in ten years of operation that one or more of our funds have been ranked in the top ten globally.  

We are proud of the fact that, at the end of 2018 after the Chinese onshore market had declined by 34% and investor sentiment was at its lowest, we took a call that the sell-off was overblown, and that Chinese markets had significantly more upside potential than downside risk.  We took action and added money to the two most aggressive strategies in the Chinus Fund.  I also personally added to my investment in the Chinus Fund.  Our moves paid off as those strategies jumped 59% and 47% in 2019 and were major contributors to the Chinus Fund’s outperformance. 

Part of our value add as managers is to make contrarian moves when our information network provides evidence that markets are acting irrationally.  These opportunities often turn out to be quite lucrative, as was the case in 2019.

Looking forward, we believe that SE Asia (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) offers similarly attractive risk/reward dynamics.  I personally added to my investment in the Asius Fund late last year to build exposure to this opportunity.  We discuss in more detail below why we believe SE Asia could be a once in a generation opportunity.