Best performing Equity mutual funds in Nigeria as of July 2026

China's quantitative hedge funds are experiencing a significant rebound following a severe market downturn in July, according to a Bloomberg report. The recovery highlights the resilience of the country's RMB2.6tn ($387bn) quant industry, though losses remain unrecouped for many managers. A recent analysis by Shenzhen-based hedge fund tracker PaiPaiWang Investment & Management shows that the average return for 692 index-enhancement products was 9.1% in the week ending August 7, surpassing the average gain of 7.2% across the underpinning stock indexes.

Index-enhancement strategies, designed to generate additional returns or alpha through quantitative models, are believed to be regaining effectiveness as the recent performance indicates that some factors contributing to the July selloff are starting to function normally again. Long-only quant funds were particularly hard hit during July, with an average loss of about 17% due to investors selling technology and artificial-intelligence related stocks.

The recovery has been more pronounced in small- and mid-cap stocks favored by many quantitative managers. The CSI 1000 index rose 10% in the first two weeks of August after falling 20% in July, while the larger-cap CSI 300 gained around 2% over the same period following an 8% decline in July. Seven index-enhancement strategies monitored by China Merchants Futures generated positive alpha during the week ending August 14, with products tracking the CSI A500 and CSI 500 outperforming their respective benchmarks by 1.2 percentage points.

Quantitative models can respond quickly to market normalization, but the rapid reversal underscores the sector's vulnerabilities, as crowded positioning and sudden shifts in market structure can simultaneously affect multiple strategies.