High-Flyer Quant's 56.6% Return Ranks Second in China
In 2025, Chinese quantitative fund High-Flyer Quant (幻方量化) secured its position as a top-tier manager, delivering an average return of 56.6%. According to data from private fund tracker P㚅PāiWǎng, this performance placed the firm second among domestic quant funds managing over 10 billion RMB, trailing only Ningbo Lingjun Investment's return of over 70%. This strong showing is projected to generate over $700 million in revenue, based on standard 1% management and 20% performance fees. This capital provides a substantial financial shield for DeepSeek, the AI company incubated by High-Flyer in 2023 and controlled by majority shareholder Liang Wenfeng.
Pivot to Long-Only Strategy Drove Outperformance in 2024
The fund's exceptional results are a direct consequence of a decisive strategic shift. In 2024, High-Flyer Quant completely exited market-neutral strategies, reorienting its focus to a pure long-only product line designed to outperform stock benchmark indexes. This adjustment became the core driver of its growth. The performance was consistent across its leadership, with two products managed by co-founder Xu Jin averaging a 58.6% return, while eight products from CEO Lu Zheng posted a 56% average gain. Demonstrating strong risk management, Lu Zheng's stock strategy achieved a Sharpe ratio of 2.8 as of December 19, ranking first in risk-adjusted returns among leading quant firms.
Chinese Quant Funds Doubled Global Returns in 2025
High-Flyer's success mirrors a banner year for China's entire quantitative investment sector. In 2025, Chinese quant funds achieved an average return of 30.5%, more than double the average performance of their global counterparts. The returns show a clear strategic divergence, with pure long-only strategies leading the pack at an average gain of 35%, outpacing subjective long-only funds by more than 10 percentage points. This robust performance has fueled industry consolidation and expansion; the number of quant firms managing over 5 billion RMB grew from 63 at the end of 2024 to 91 by November 2025.
