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Komfie Manalo, Opalesque Asia:

Humans still reign supreme against the machines as three of the top five best-performing hedge funds last year are made up of human-led stock-picking strategies, according to data by HSBC research.

According to a Reuters report, Alibaba, Tencent and AAC Technologies helped Hong Kong-based Oceanwide Asset Management to gain 43% in 2017 from its China equities-focused hedge fund.

Oceanwide's selective stock-picking strategies is the top-performing fund last year with its long-short strategy.

According to HSBC, some funds significantly exceeded their benchmarks - while other funds road both a strong beta market environment in delivering overall 6.5% returns basis. With the US stock market up near 20% in 2017, a 6.5% return might seem rather mundane. But with some hedge funds, the goal is not absolute returns, but rather a potential protective return stream during extended stock market downtrends, the report added.

The HSBC data also showed that funds using machine algorithms accounted to a mere 15% of last year's best performing hedge funds.

One investor with $2bn in hedge funds told Reuters, "I've not been a big believer in machines because the worl......................

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