Hedge Funds Bet Big on Disruption: Chinese Robo-Taxis and India’s Pharma Boom Lead Charge

Wall Street’s sharpest minds are doubling down on Asia’s next-gen plays—where algorithms meet asphalt and pharmacy counters go digital.

Chinese self-driving taxis: The gamble that could make or break the AI mobility race.

India’s drug retail revolution: One part healthcare, two parts market domination—with hedge funds playing pharmacist.

Because nothing says ’alpha’ like betting your LP’s money on regulatory loopholes and unproven tech.

Investors set their focus on the healthcare and security sectors

BREAKING: China robotaxis and Indian pharma emerge as top hedge fund picks at Sohn Hong Kong conference. 🚗💊

— WhaleInsight 🐋⚡ (@whale_insight) June 2, 2025

Singapore’s Arisaig Partners favors MedPlus Health Services, a pharmacy chain in India, as its private label products strengthened its low-price proposition, widening the gap with competitors.

India-based hedge fund startup Panvira Management was bullish on Piramal Pharma, a contract development and manufacturing organization (CDMO), expecting its growth to accelerate to high teens and to benefit from tax rate normalization.

“Inflation is lower, the government is focusing on the middle class, and consumer spending is coming off a low base. I simply believe this is the time when the consumer space in general will do better.”

– Vatsal Mody, partner and head of India research at Arisaig Partners

Other emerging hedge funds like Korea-focused fund MY.Alpha Management and Hong Kong’s Frontline Global Management were keen on opportunities in the security sector driven by geopolitical conflicts. MY.Alpha Management’s Jon Jhun said Korea dominated the ex-Russia and ex-China nuclear supply chain.

Jhun chose Hyundai Engineering & Construction, which engages in nuclear plant engineering, procurement, and construction (EPC). Frontline Global Management picked Spanish defense firm Indra Sistemas, believing the firm WOULD win more European contracts.

Japan companies hog the spotlight in 2024 as hedge funds tout top Asia picks

Asset managers emphasized Japan Inc.’s efforts to improve capital efficiency, as Japanese companies in outsourcing, robotics, and the drug sector were in favor at the 2024 Sohn Hong Kong Investment Leaders Conference. Last year’s event invited 14 funds to pitch their top investment ideas, but only two funds pitched ideas on Chinese stocks, down from seven in 2023.

David Mitchinson, founding partner at Zennor Asset Management, said the biggest opportunities in the world’s third-largest economy were in companies with “improving stories” or those that strengthened corporate governance rather than firms that were already excellent. He recommended Transcosmos, which was likely to benefit from Japan’s tight labor market.

Seth Fischer, founder of activist fund Oasis Management, said Japan’s government continued to raise the bar for management, so investors who engaged with Japanese companies had higher chances of winning. Fischer also said the activist fund saw upside potential for Kobayashi Pharmaceutical, a drugmaker that recalled a health supplement after five deaths possibly linked to the product occurred.

Hong Kong’s Tybourne Capital Management placed its bet on Samsung Electronics, claiming that the tech giant could grab the global memory chip market share from rival SK Hynix. CloudAlpha Capital Management, also from Hong Kong, was bullish on South Korea’s HD Hyundai Electric, citing AI-linked demand for electricity equipment.

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