Long-only funds have replaced hedge funds as the top buyers of China technology stocks since January, according to Morgan Stanley, as investors remain divided on the prospect of further gains.
Net purchases by mutual funds, which were previously underweight China, “were no longer driven solely by portfolio rebalancing, but now also reflect net buying to deploy new capital,” strategists including Gilbert Wong wrote in a note February 16. In contrast, short money managers have trimmed gross holdings since the end of last month, they added.
