Albemarle: The Chinese equity funds still able to deliver alpha

Chinese stocks took a severe hit as the threat of a credit crunch in China escalated and the country's central bank threatened to continue its credit-tightening policy.

But there are still some funds capable of delivering alpha over the next 12 months, according to the new research tool developed by Albemarle Street Partners, ‘Alpha Quest’. The Shanghai Composite index plummeted last week as nervous investors took their money out of China. The market fell briefly from highs above 2,300 at the end of May to below the 1,900 mark, and was trading at 1,959 on Tuesday. Year to date, China’s leading index is down 14% and Hong Kong’s Hang Seng has dived 10.2%. Chinese equity funds have suffered in the sell-off, losing double digit performance figures bet...