China’s $930 billion sovereign wealth fund is maintaining its allocations to hedge funds near current levels thanks to their “very high” risk-adjusted returns ..
Hedge funds have delivered China Investment Corp. a higher Sharpe ratio than any other asset class in its public-market portfolio, said Fan Hua, head of asset allocation at CIC, referring to a measure widely used to gauge a money manager’s ability to generate risk-adjusted returns. The Beijing-based firm has about 8 percent of its overseas portfolio in hedge funds, making it one of the world’s largest investors in the industry, she said.
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