Gate

3 months agoNews Editor

Gate’s July wealth report shows fast GUSD growth and dual-currency yields above 110%

Gate said in its July wealth management report that the crypto market continued a cautious recovery during the month, with total market capitalization rebounding to $2.26 trillion, up about 7.6% from a month earlier. BTC rose 7.3% and ETH gained 18.5%, while demand for stable-yield products and diversified strategies increased during the recovery, according to the report. On the conservative wealth management side, holdings in Gate’s fixed-term flexible products showed BTC up 7.3% month on month and USDT up 70.4%. GUSD’s total minted supply climbed from about 182 million tokens at the start of July to about 215 million by month-end, and at one point exceeded 230 million. For advanced products, the annualized return on Gate’s BTC dual-currency investment for 0-day buy-low and sell-high structures reached 95.5% and 113.5%, respectively, or 34.4 and 32.6 percentage points above the market average. The report also said the average monthly return for quantitative fund USDT strategies was 3.0% in July, with Interstellar Pioneer leading at 4.2%, while Interstellar Hedge posted a cumulative return of 19.1% and maintained a 100% monthly win rate for 25 straight months. In equities, trading share in South Korean stocks briefly reached about 90% early in the month before U.S. stocks recovered to around 70%, while SK Hynix and SpaceX ranked first and second in holdings.

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quant funds

3 months agoNews Editor

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.

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Michael Burry

3 months agoNews Editor

Michael Burry warns of a potential U.S. stock flash crash as quant fund selling gains focus

Michael Burry published a fresh warning on Substack on Aug. 4 after disclosing his latest positions the same day, arguing that U.S. equities are near the edge of a rapid sell-off. His central point was that the risk is not being driven by worsening fundamentals, but by a chain reaction inside Wall Street’s volatility-sensitive quant funds. According to the report, these strategies automatically cut exposure when volatility rises, creating a feedback loop in which falling prices trigger more selling and more selling pushes prices lower. Burry highlighted active quant funds in particular, saying their algorithms continuously scan market signals and reduce positions once volatility spikes. The article pointed to weakness in momentum stocks as evidence, noting that the iShares MSCI USA Momentum Factor ETF fell 14% from a recent high. It also listed declines in SK Hynix, Nvidia and Broadcom, while stating that Burry added to a short position in Micron at $880. Goldman Sachs, cited in the same report, said CTA deleveraging is not over and estimated another $24.9 billion of selling in a downturn, with August corporate buybacks left as the main support for equities.

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Liang Wenfeng

4 months agoNews Editor

Liang Wenfeng-controlled Huanfang and Jiuzhang took the largest private fund allocation in Changxin Technology placement

Changxin Technology’s preliminary offline placement results show that 113 private fund managers, through 2,459 products, received allocations totaling 161 million shares worth 1.436 billion yuan. The filing divided institutional investors into Class A, which included public funds, social security funds, pensions, annuities, bank wealth management, insurers and QFII, and Class B, which included private funds, broker proprietary desks, trusts and finance companies. Class A investors received 1.978 billion shares, accounting for 91% of the offline issuance, while Class B investors received 196 million shares, or 9% of the total. Among private funds, the top 10 by number of allocated accounts were all major quantitative firms. Shanghai Yanfu ranked first with 282 allocated accounts, followed by Century Frontier, Jiukun Investment, Shanghai Chengqi and Huanfang Quant with 209, 194, 167 and 153 accounts. Lingjun Investment, Shanghai Jinde and Minghong Investment also each had more than 100 allocated products. According to public information cited in the report, DeepSeek founder Liang Wenfeng controls both Ningbo Huanfang Quantitative and Zhejiang Jiuzhang Asset. The two firms together had 194 private fund products allocated 20.2497 million shares, with a placement value of about 175 million yuan, the largest share among private funds.

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Bit.Fan