Chinese Tech Bets Yield 22% Returns for Savvy Hedge Fund Manager

Hedge Fund Manager Finds Success in Chinese Market Despite Global Tensions

Beeneet Kothari, founder of Tekne Capital, has defied market trends by achieving over 22% returns last year through strategic investments in China. The veteran investor, who has been active in the Chinese market since 2005, attributes his success to a philosophy of betting on the unexpected, inspired by legendary financier George Soros.

Kothari, a former portfolio manager for Stan Druckenmiller at Duquesne Capital, now leads Tekne Capital, a $1.2 billion hedge fund headquartered in New York with a local team in China. The firm’s investments in Chinese equities have proven particularly fruitful, buoyed by the rise of AI startups like DeepSeek.

Despite ongoing trade tensions between the United States and China, Kothari sees significant opportunities in what he considers an undervalued Chinese market. “The current market conditions in China are incredibly favorable,” Kothari stated. “With stocks having dropped significantly, we’re seeing numerous buying opportunities.”

The hedge fund manager predicts a surge in AI models and innovations from companies such as ByteDance and DeepSeek. He also notes that the departure of Western capital from China has created a unique investment landscape, potentially benefiting those willing to navigate the market.

Kothari’s track record in China includes successful investments in tech giants Alibaba and JD.com during his tenure at Duquesne. More recently, Tekne Capital’s investments in companies like GDS have outperformed average hedge fund returns.

Looking ahead, Kothari anticipates China taking a leading role in robotics, citing the country’s expertise in large-scale hardware manufacturing. He also sees potential in China’s developing enterprise software industry, which he believes lags behind its U.S. counterpart but offers significant growth opportunities.

“Investing in Chinese Series B companies currently offers better value than similar investments in Silicon Valley,” Kothari asserted, highlighting the potential for substantial returns in the evolving Chinese tech landscape.

As global investors continue to grapple with geopolitical tensions and market volatility, Kothari’s success serves as a reminder of the potential opportunities that exist for those willing to look beyond conventional wisdom in international markets.