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Judy Xue

As Leopold Aschenbrenner’s US hedge fund saw assets wiped off by more than two-thirds in a single month, some of China’s new portfolio managers also felt the shock across the Pacific, learning bitter lessons early in their careers.
The 50-day market turmoil, sparked by a global correction in artificial intelligence stocks in June, turned some of China’s rookie managers into an unwitting focal point. Even seasoned investors faced hard questions from clients as portfolios sagged.
For Yuan Zeqiang, with three and a half years of sell-side research, his two debut portfolios at Caitong Fund Management tumbled 36 per cent and 33 per cent, respectively, between his June 11 appointment and July 30, market data showed.
Taking over two products from the outset, Yuan inherited combined assets of 7.28 billion yuan (US$1.08 billion) at the end of the second quarter – an unusually large mandate for a first-time manager.
The rapid drawdown stemmed from his heavy exposure to tech stocks, which retreated after sharp gains earlier in the year.
Even as debate intensified over the sustainability of the AI boom, Yuan had remained steadfast in his second-quarter report on July 21, writing that domestic optical communications “still held upside potential” and that printed circuit board values would rise significantly.
Yuan is not alone in this highly competitive environment.
Fullgoal Fund Management’s Wu Dongdong, with four years of experience, saw his newly launched portfolio tumble nearly 34 per cent within 46 days after its June 16 launch, market data showed.
Wu Haining, a portfolio manager at Hengyue Fund Management, liquidated consumer holdings after taking charge on June 10 to pivot into AI hardware, dragging her fund down by nearly 41 per cent in 55 days as top holding GigaDevice slumped more than 40 per cent across 20 trading days.


Compared with veterans, new entrants face tougher client tests and usually lack the funding support that cushions drawdowns, with their concentrated bets leaving little margin of error.
On the other side of the Pacific, 25-year-old Aschenbrenner saw his Situational Awareness LP offload US$16 billion in leveraged public equity positions to Citadel to prevent total liquidation, after plunging 67 per cent in July.
The volatility has intensified portfolio adjustments across China’s market.
More than 1,000 portfolio managers had stepped down from funds this year, while 768 were registered, Securities Daily reported on Wednesday.
China’s securities investment has seen explosive growth in recent years, riding the country’s tech boom in the Shanghai and Shenzhen stock markets.
Net assets managed by mutual funds also rose to 39.7 trillion yuan by the end of June from 34.4 trillion yuan a year earlier, the latest government data showed.
Assets under management in the broader private fund industry hit a record 23.6 trillion yuan, with 1.5 trillion yuan added in the first half of 2026.


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New portfolio managers were thrust into the spotlight as tech bets soured and client scrutiny intensified during 50-day market turmoil


New portfolio managers were thrust into the spotlight as tech bets soured and client scrutiny intensified during 50-day market turmoil.


How China’s young managers grappled with billion-yuan mandates as AI shocks hit portfolios

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}New portfolio managers were thrust into the spotlight as tech bets soured and client scrutiny intensified during 50-day market turmoil

New portfolio managers were thrust into the spotlight as tech bets soured and client scrutiny intensified during 50-day market turmoil