Chinese hedge fund responds to investor ire after 34% loss

Bloomberg

Chinese asset manager Loyal Valley Capital Co. responded to pushback from clients who lost a third of their money on a product last year, as the $11 billion manager became the latest
target of investor ire.
One of the firm’s hedge funds allegedly deviated from its theme of tech- and consumer-stocks, while repeated requests for dialogue with fund manager and founder Lin Lijun were rejected as losses mounted, local media reported, citing a letter from an unnamed group of investors addressed to the nation’s securities regulators.
Lin joins a growing list of prominent fund managers in China to come under criticism from retail investors for their performance.
The asset manager denied the accusations in a response to Bloomberg, saying the letter contains many misstatements and reflects “irrational” investor requests after the losses, which it called temporary. The asset manager said it is now expanding its research team to win client trust though long-term performance.