Mahjong China Fund: Business Lunch in Lugano, 2 July 2025
Mahjong China Fund: Navigating China’s New Landscape
Business Lunch – Grand Café Al Porto, Lugano – 2 July 2025
Earlier this week, we hosted a private lunch presentation at the historic Grand Café Al Porto in Lugano, bringing together professional investors to explore China’s evolving macro environment and discuss how we position to capture opportunities through our Mahjong China Fund.
Key takeaways from our recent trip to Asia
Following more than 30 meetings in Hong Kong with leading hedge fund managers focused on China and the broader region, we came back with a few clear insights:
- Shifting focus to domestic drivers: Managers are increasingly tilting portfolios from export-led themes to domestically driven opportunities across consumption, technology, and industrials.
- AI and tech acceleration: Accelerated AI adoption in China, underpinned by both government initiatives and private sector investments, is a top area of conviction.
- Selective property exposure: While the property sector is still digesting structural adjustments, selective managers are positioning for a recovery in tier-1 cities.
- Active hedging & volatility management: Increased use of derivatives to navigate tech concentration risks and market volatility.
- Capital flows turning positive: Local investors, corporate buybacks and a gradual return of international flows are stabilizing markets.
- Valuations remain compelling: Many high-quality Chinese companies continue to trade at significant discounts versus global peers, offering a fertile hunting ground for active managers.
Why Mahjong China Fund now?
In this complex backdrop, we believe the Mahjong China Fund provides a highly differentiated way to access China’s equity markets. Unlike traditional long-only or passive vehicles, our approach leverages local long/short managers with deep on-the-ground expertise, capable of navigating dispersion and managing downside risks.
Since its inception on 31 March 2021, the Fund has delivered a cumulative return of +8.5%, significantly outperforming the MSCI China Index (-32.2%), with less than one-third of the volatility.
Our concentrated portfolio of 10-15 managers blends variable net, low net, and long-biased strategies — aiming to capture approximately two-thirds of the upside with only one-third of the downside.
This makes the Fund an attractive diversifier within a global equity or emerging markets allocation, especially for investors seeking controlled volatility and strong risk-adjusted returns.
Learn more
For more information about the Fund, including the prospectus and legal documentation, please reach out to our NS Partners representative or visit our website at nspgroup.com.
Marketing communication. For professional/qualified investors only. Past performance is not indicative of future results.