Last year, Chinese quantitative hedge funds performed remarkably well, outperforming the market significantly. The recent ranking released by PaiPai.com shows that the top-performing firms are all algorithm-driven—using mathematical models and automated trading systems to formulate investment strategies.

One star fund achieved a 56.6% return last year, ranking second among the top ten hedge funds. The top-ranked fund in 2025 is even more impressive, reaching a 73.5% return. In comparison, the Shanghai Composite Index, Shenzhen Component Index, and CSI 300 only increased by 18%, 30%, and 18% respectively last year, highlighting a clear gap.

What is the secret behind this? Technological upgrades. This fund was established in 2015 and only launched real-time trading in 2016, initially using GPU (Graphics Processing Units) for high-speed computation. Before that, they mainly relied on traditional machine learning algorithms and CPUs, which were less efficient.

Currently, the assets managed by this fund are between 70 billion and 80 billion RMB, making it one of the largest hedge funds domestically. Interestingly, they also subscribed to a large number of shares in the chip design company Mooresville before its IPO, earning a profit there as well.

The core of quantitative trading is to algorithmize investment decisions—relying on data rather than intuition, and models rather than experience. During market volatility, this systematic approach often uncovers opportunities that traditional investors tend to overlook.