How one hedge fund ignored the China bears and made a clean profit

Hong Kong

BETTING against the short-sellers helped Gloria Lu's fledgling hedge fund establish itself among Asia's biggest stars of 2017.

Parantoux Capital's fund, which manages about US$55 million, made money buying shares of hardware company AAC Technologies Holdings Inc, as they plunged in the wake of a short-seller report in May, said Ms Lu, a Hong Kong-based founding partner. Going long on property developers China Evergrande Group and Sunac China Holdings Ltd - whose shares have soared sixfold this year - also paid off for the fund, which wagers on rising and falling stocks globally.