Foreign capital is accelerating its allocation to China! QRT's funds expanded 10 times in one year, exceeding US$2 billion in size, with a return rate of 98%

# Zhang Yaqi

Dao, the China-focused quantitative fund under global quant giant QRT, has seen its assets surge more than 10‑fold over the past year to surpass $2 billion.

From its launch in November 2022 through the end of January this year, the fund posted a cumulative return of 98%, significantly outperforming the broader market.

Meanwhile, surveys by Goldman Sachs and other institutions show foreign capital is accelerating its return to China. QRT is also doubling down on its China and Asia‑Pacific presence with a major hiring spree and office expansion in Hong Kong.

Assets under management (AUM) in the China equity fund run by Qube Research & Technologies (QRT) have jumped more than 10‑fold in the past year to over $2 billion, marking the latest sign of foreign investors returning to China.

London‑based QRT manages over $42 billion in assets. Its long‑only China equity fund Dao now exceeds $2 billion in AUM, soaring from roughly $190 million a year ago.

Murray Steel, Chief Operating Officer for Asia Pacific at QRT, said Dao is the only one of the firm’s four funds still open to new capital.

Recent surveys by Goldman Sachs and BNP Paribas show investors are stepping up allocations to China‑focused funds.

Marlin Naidoo, Global Head of Capital Introductions at BNP Paribas, noted in an interview that equity long‑short and quantitative strategies are investors’ top choices for China in 2026.

BNP Paribas’ 2026 Hedge Fund Outlook survey found that 14% of investors plan to increase allocations to China funds this year, up from 9% who actually did so in 2025.

Investor interest in China funds has neared levels for North America in 2026.

## Quant strategy outperforms market by 57 percentage points

From its launch in November 2022 through the end of January 2026, Dao delivered a total return of 98% in US dollar terms, outperforming the CSI All Share Index by 57 percentage points.

Steel said the fund has beaten its benchmark every year, without providing annual breakdowns.

The fund uses QRT’s global quantitative research capabilities to trade onshore A‑shares and is positioned as a “gateway for international investors to access China’s market.”

QRT’s overall fund suite returned 22% last year on an asset‑weighted basis.

Bloomberg calculations show QRT’s AUM expanded about 50% over the past 11 months, driven by fresh inflows and investment returns.

Late last year, the firm merged its Torus and Prism funds into a single pool: Torus traded futures and equities, while Prism included macro bets and futures.

QRT is co‑led by Pierre‑Yves Morlat and Laurent Laizet, both formerly of Société Générale and later Credit Suisse.

The firm spun out via a management buyout in 2018 and has since grown into one of the largest and fastest‑rising firms in the hedge fund industry.

Aside from Dao, QRT’s three other funds trade globally.

The fact that Dao remains the only fund open to new money underscores the firm’s focus on investment opportunities in China.

## Ramping up Hong Kong presence

In December 2025, QRT leased 146,000 square feet of office space at Two International Finance Centre in Hong Kong to accommodate its growing team.

The space is being vacated by UBS and is expected to be delivered in the first quarter of 2027.

While waiting to move in, the firm leased four additional floors at The Center in early 2025, expanding its footprint there by 80%.

As previously reported by Bloomberg, QRT employs about 2,000 people worldwide, with one‑third based in Asia Pacific, where it runs 5 of its 13 global offices.

This staffing structure highlights the central role of Asia, and China in particular, in its global strategy.

Source: Wall Street News

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