Quant hedge funds post sharp July drawdowns as several products fall more than 20%
China’s quant private fund sector suffered a broad pullback in July, according to a report cited by ChainCatcher from National Business Daily. Several firms saw monthly net-value declines of more than 20%, with some products’ year-to-date returns flipping from positive to negative. Among Huanfang Quant’s nine disclosed products, eight had fallen into negative territory for the year, and all posted losses of more than 20% in July. The largest drawdown reached 22.15%. Minghong Investment reported that nine of its 14 displayed products had posted negative returns for the year. Jiukun Investment showed better year-to-date resilience, with 14 of 15 products still in positive territory, though its monthly pullback was also described as notable. Yanfu Investment was cited as relatively steady by comparison. Several institutions said the sell-off reflected sentiment and trading structure rather than the end of the AI industry trend. Danshuiquan Investment said AI is still advancing rapidly in model capability, lower usage costs, and broader applications. Institutions added that AI investing is shifting from a first phase centered on computing infrastructure to a second phase of wider access to intelligence, which may benefit supply-chain companies serving top model developers and major cloud providers with cost-effective solutions.
