Hedge Funds Reassess Strategies at Sohn Hong Kong Following Volatile Year

2024 was a wild ride for global markets. Conflicts, higher interest rates, and slow economies unsettled investors worldwide. Hedge funds, known for chasing big returns, felt the pressure too.

Leading hedge fund managers gathered at the 2025 Sohn Hong Kong Conference. They went beyond discussing figures. They exchanged fresh ideas, daring strategies, and lessons learned from the previous year. It was more than a typical finance meeting; it felt like a fresh start.

We’ve seen hedge funds change course. Some pulled out of risky spots like China. Others jumped into new bets like Indian healthcare or robotaxis in Asia. Everyone’s asking: what’s next?

Let’s walk through what happened at the Sohn Conference and why it matters. We’ll explore how hedge funds are planning their next moves in this changing world.

A Turbulent Year

In 2024, global markets faced significant volatility. Factors such as U.S.-China trade tensions, fluctuating interest rates, and geopolitical events impacted hedge fund performance. Managers recognized the need to reassess strategies to handle these challenges effectively.

Main Investment Topics at Sohn Hong Kong 2025

Emphasis on Chinese Technology and Innovation

Flight Deck Capital talked about Baidu’s self-driving car unit, Apollo Go. They believe it can grab a big part of a $237 billion market by 2034.

Apeiron Capital liked DiDi Global. They said the company is making money and growing fast in other countries. Triata Capital chose PDD. They pointed out that Temu, its shopping app, now has more users than Amazon.

Diversification into Indian Healthcare

Arisaig Partners and Panvira Management showed strong interest in India’s healthcare market. Arisaig supported MedPlus Health Services. Panvira backed Piramal Pharma.

Both believe more people are spending on health. They also said India’s economy is helping these companies grow.

Strategic Moves in Security and Infrastructure

MY. Alpha Management favored Hyundai Engineering & Construction from Korea for its strong skills in nuclear plant projects. They chose it because the company is skilled in building nuclear power plants.

Frontline Global Management picked Spain’s Indra Sistemas. They think it will grow as Europe spends more money on defense.

Activist Approaches in Japanese Markets

Palliser Capital pushed Toyo Tire in Japan to give more returns to its shareholders. Oasis Management put money into Round One. They believe the company will grow by entering the U.S. dining market.

Strategic Shifts and Adaptations

Monolith Management invests in AI, data centers, and Chinese markets and achieved a 53% year-to-date return.

Conversely, SVI’s China-focused Value Multiplier Fund was wound down due to limited expansion potential amid geopolitical tensions.

Hedge funds increasingly utilize derivatives to understand and handle market turbulence, with Hong Kong derivatives trading reaching record levels.

Hong Kong’s Evolving Hedge Fund 

Despite challenges, Hong Kong remains the largest hedge fund hub in Asia. There has been a 24% rise in hedge fund managers and family offices.

Hudson Bay Capital, Sona Asset Management, and Centiva Capital are among the new firms opening offices in Hong Kong. This shows that trust in the city is growing again.

Bottom Line

The Sohn Hong Kong Conference showed how hedge funds are changing to handle a tricky market. They are using new ideas and spreading out their investments.

This helps them get ready for future success. Hong Kong is also changing and still gives good chances for growth and smart investing.

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Disclaimer:

This content is for general information and should not be considered financial advice. Always research thoroughly before making decisions.