- High-Flyer Quant, controlled by DeepSeek founder Liang Wenfeng, returned about 56.6% in 2025, ranking No. 2 among China hedge funds with more than 10 billion yuan AUM.
- With roughly 70 billion yuan (about US$8 billion) under management, High-Flyer has leveraged large in-house GPU clusters to power both trading and DeepSeek’s AI research.
- DeepSeek, spun out in 2023, pursues efficient, low-cost and partly open-source LLM/AGI development backed by High-Flyer’s capital and compute.
- High-Flyer’s rise is pushing Chinese asset managers to adopt AI more aggressively, even as regulation and strategy shifts (including away from market-neutral) add risk and scrutiny.
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The recent rankings indicate that High-Flyer Quant, under Liang Wenfeng, is not only among China’s top performing hedge funds in 2025 but is also building dual strength across finance and AI. With returns of ~56.6% in 2025 among funds with over 10 billion yuan in assets under management, High-Flyer ranks second only to Lingjun Investment. This strong performance gives High-Flyer both credibility and capital leverage. ([indexbox.io](https://www.indexbox.io/blog/high-flyer-quant-ranks-second-among-chinas-top-hedge-fund-managers-in-2025/?utm_source=openai))
High-Flyer’s assets are substantial—reports place AUM at US$8 billion, underpinned by large GPU clusters purchased pre-export-control. The AI infrastructure, particularly Fire-Flyer I and II clusters, is a pillar supporting both trading models and DeepSeek’s research ambitions. ([ny1.com](https://ny1.com/nyc/all-boroughs/ap-top-news/2025/01/28/upstart-chinese-ai-company-deepseeks-founder-started-out-as-a-low-key-hedge-fund-entrepreneur?utm_source=openai))
DeepSeek, founded in 2023 as a research arm spun out from High-Flyer, is positioning itself to challenge more expensive Western models by delivering efficient, open-source LLMs. Its talent strategy favors recruits fresh from universities, less senior personas, and flexibility for any researcher to access computing resources if they show potential. This non-hierarchical approach suggests a culture of experimentation and risk‐taking. ([en.wikipedia.org](https://en.wikipedia.org/wiki/DeepSeek?utm_source=openai))
Regulatory pressures have hit quant strategies in China, particularly market-neutral funds. High-Flyer responded by shifting away from market-neutral products toward long-only strategies. This suggests both adaptability but also increased exposure to downside in broader market corrections. ([es.wikipedia.org](https://es.wikipedia.org/wiki/High-Flyer?utm_source=openai))
Strategically, the rise of High-Flyer/DeepSeek opens several implications: China’s hedge fund sector is accelerating its incorporation of AI not just in trading but in model creation and deployment; high barriers to hardware (GPUs & clusters) are being incrementally overcome through early hardware investment; and open-source AI development is emerging as both a competitive differentiator and a soft power tool. However, risks include regulatory tightening around AI/AGI development, export control implications, potential performance volatility, and geopolitical pushback. Open questions include the profitability beyond research and low-cost models, sustainability of returns, degree of openness in DeepSeek’s IP, and whether China can scale this model internationally without triggering further sanctions.
Supporting Notes
- High-Flyer Quant posted a return of ~56.6% in 2025, placing it second among China’s large hedge-fund firms managing >10 billion yuan. ([indexbox.io](https://www.indexbox.io/blog/high-flyer-quant-ranks-second-among-chinas-top-hedge-fund-managers-in-2025/?utm_source=openai))
- Assets under management for High-Flyer are ~70 billion yuan (≈US$8 billion). ([businesstimes.com.sg](https://www.businesstimes.com.sg/startups-tech/startups/deepseek-founder-liangs-funds-surge-57-china-quants-boom/?utm_source=openai))
- High-Flyer purchased ~10,000 Nvidia A100 GPUs before U.S. export restrictions, built the Fire-Flyer II cluster featuring 200 Gbps interconnects. ([en.wikipedia.org](https://en.wikipedia.org/wiki/DeepSeek?utm_source=openai))
- Liang founded DeepSeek in 2023, spun off from High-Flyer. DeepSeek focuses on AGI research, low costs, and open-source or commonly shared models. ([forbes.com](https://www.forbes.com/sites/tylerroush/2025/01/28/who-is-behind-deepseek-heres-what-to-know-about-founder-liang-wenfeng/?utm_source=openai))
- High-Flyer abandoned market-neutral fund products after market moves exposed short positions; shifted to long-only tactics. ([es.wikipedia.org](https://es.wikipedia.org/wiki/High-Flyer?utm_source=openai))
- Other funds such as Baiont Quant, Wizard Quant, and mutual funds like China Merchants Fund have started integrating AI heavily following High-Flyer’s example. ([reuters.com](https://www.reuters.com/technology/artificial-intelligence/after-deepseek-chinese-fund-managers-beat-high-flyers-path-ai-2025-03-14/?utm_source=openai))