Hedge Fund Triata Gains 39% as DeepSeek Boosts Fund Returns

Bei Hu and Lulu Yilun Chen

Fri, Mar 7, 2025, 1:57 AM 6 min read

(Bloomberg) -- A rally successful Chinese stocks tied to excitement implicit DeepSeek and Unitree Robotics lifted returns of respective hedge and long-only funds past month.

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DeepSeek’s unveiling of a lower-cost, open-source artificial quality exemplary and Unitree’s showcase of its robotics exertion captured investors’ imagination. The MSCI China Index surged astir 12% successful February and has extended gains this period by 3%, led by stocks expected to payment from the wider adoption of the technologies.

“Chinese equities whitethorn spot a re-rating this year,” said Zheng Fang, laminitis of Hong Kong-based Keywise Capital Management Ltd. “DeepSeek and Unitree person prompted a re-evaluation of China’s exertion development.”

Returns and strategies of Keywise and 4 different firms that benefited from the rebound are listed below.

Triata

Triata Capital Ltd.’s China hedge money returned 39% during the month, helped by bullish bets connected AI bundle and information halfway stocks, said a idiosyncratic with cognition of the matter.

Chief Investment Officer Sean Ho started his vocation astatine planetary quant trading steadfast Susquehanna International Group, and built the archetypal alternate information strategy astatine Hong Kong-based plus manager Tybourne Capital Management earlier starting his ain firm.

Using alternate information specified arsenic institution hiring activities, Triata started buying American depositary receipts of information halfway relation GDS Holdings Ltd. successful the archetypal 4th of 2024 erstwhile they were trading betwixt $5 and $6, said a idiosyncratic with cognition of the matter, who asked not to beryllium identified discussing backstage information. The steadfast declined to comment.

The merchantability of a number involvement past twelvemonth valued GDS’s planetary concern astatine astir $3.86 per ADR, implying the marketplace hadn’t taken into relationship overmuch of the imaginable other request from the mainland Chinese AI bundle and infrastructure industries, the idiosyncratic said. GDS surged supra $40 successful February.

Triata, with much than $1 cardinal successful assets, holds AI bundle companies including those progressive successful unreality computing and turning substance into abbreviated videos, said the person.

Viridian

Viridian Asset Management made an estimated 6% successful its champion period since it started trading successful August, buying shares successful follow-on offerings of Chinese exertion companies raising superior to concern expansion, according to CIO Pascal Guttieres.