Global Markets: AI supply chain bets propel Asian hedge funds to stellar performance

Asian hedge funds delivered exceptional returns in 2025 driven by AI supply chain investments, with WT Asset Management's long-short China Focus fund returning 103% and E20 Capital gaining 136% in the first five months. Performance was fueled by positions in semiconductor manufacturers like Hua Hong and AI firms such as Zhipu AI, which surged tenfold post-Hong Kong listing. Major Asian indices including KOSPI (nearly doubled YTD), Taiwan's benchmark (+53%), and Nikkei 225 (+31%) hit record levels amid AI-driven rally resilience despite geopolitical tensions.