Komfie Manalo, Opalesque Asia:
The surge in Chinaís internet sector has helped U.S, hedge fund Passport Capital to register double-digit gains of 18.3% this year after posting a 2.4% profits in October, the firm said on Wednesday.
In a report, SCMP.com said that the $3.1bn San Francisco-based hedge fund manager outperformed the average hedge fund which gained an estimated 6% this year based on industry data.
Passport Capital posted its highest gains in 2007 a year before the global financial crisis when it generated 219% profits by investing offshore with its flagship fund, Global Strategy, bought stocks from China and Saudi Arabia.
This year, Passportís strong performance came from Chinaís real estate internet portal Soufun, which saw its shares rose by 196% after announcing plans to launch a financial services platform in late November.
The hedge fundís positions in gold, copper and other mining stocks also contributed to its strong performance, the firm said.
In August this year, Passport sold its entire portfolio of mortgage debt backed by the U.S. government in the second quarter.
"When we recognized prospects in the agency space had changed, we cut risk," Passport wr......................
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