Hillhouse-seeded Franchise fund down 39% last year.
Hillhouse-seeded hedge fund Franchise Capital Management finished 2021 down 39% after a 14.1% setback in December.
Most of the losses were from long positions as the Chinese market lost ground during a regulatory crackdown, with the MSCI China declining 23% for the whole year. Short positions failed to shore up Franchise’s returns, sources said.
The Cayman-registered fund crossed $1bn early 2020 after a strong rally in most Chinese equities. The median Chinese long/short equity fund gained 26% in 2020, but lost 3.2% last year, With Intelligence data shows.