Trading & Options · Profile from Trading and Options Research Companion
High-Flyer Quant
The Hangzhou quantitative fund manager (幻方量化, Huanfang Lianghua) that Liang Wenfeng and two Zhejiang University classmates built from an algorithmic-trading experiment begun in the 2008 crisis into China's largest quant hedge fund — ~RMB 100bn (~$15.7bn) by late 2021 (Reuters, Jan 2022; Bloomberg put it at ~RMB 90bn, ~$14.1bn, in Sep 2021) — and that then incubated the AI lab DeepSeek (2023). Its edge was computing: it says it moved all its strategies onto AI models, and it built the Fire-Flyer GPU clusters (~1,100 A100s for ~RMB 200m in 2020; ~10,000 A100s for ~RMB 1bn in 2021, company posts, reported). Its record shows both sides of the edge equation in China's quant boom. Capacity: it closed to new money in late 2021, then lost ~13% in one flagship product in a quarter and publicly apologised. Regulation and crowding: it lagged in the February 2024 "quant quake" and shut its market-neutral products after a September 2024 short squeeze. And recovery: its long-only funds averaged +56.6% in 2025 on more than RMB 70bn (~$10bn) (PaiPaiWang data via Bloomberg, Jan 2026, reported). This profile takes the trading angle; the AI lab is profiled in the AI KB (DeepSeek).
At a glance
- Founded
- Trading research from 2008 (Liang and classmates, reported); asset-management entities set up 2015 and 2016 (Wikipedia, citing Jiemian and WSJ); the partnership Ningbo High-Flyer Quantitative Investment Management is dated Feb 2016 by Wikipedia, while the AI KB and section 21 say "co-founded 2015" — both are used, with the date of each entity
- Headquarters
- Hangzhou, Zhejiang (main office); registered in Ningbo
- Founders
- Liang Wenfeng, Xu Jin, Zheng Dawei (Wikipedia)
- Ownership / structure
- Private partnership; Liang retains a majority stake (Hedgeweek, Jan 2026, reported). Two AMAC-registered private fund managers (including Zhejiang High-Flyer Asset Management) with over 450 products at one point (Wikipedia); Hong Kong subsidiary licensed by the SFC (2019); QFII approval (2020) (Wikipedia, citing Chinese press)
- Type
- Quant fund (AI-driven Chinese equity: index-enhanced long-only and, until 2024, market-neutral)
- Leadership (2026)
- CEO Lu Zhengzhe (Simon Lu); Liang Wenfeng is DeepSeek's CEO and remains High-Flyer's controlling principal (Wikipedia; Hedgeweek)
- Scale (dated, reported)
- ~RMB 90bn (~$14.1bn, Sep 2021, Bloomberg) or ~RMB 100bn (~$15.7bn, end-2021, Reuters); >RMB 50bn (Oct 2024, Bloomberg); ~RMB 70bn (~$10bn, Jan 2026, Bloomberg — equal to the AI KB); 160-person investment team (Aug 2021, Bloomberg)
- Returns (reported, net, from third-party data)
- CSI 500-enhanced fund +21.9% in the first nine months of 2021, then −13.1% in Q4 2021 vs index +3.6% (Simuwang via Reuters); average >11% loss across funds in Q4 2021 (WSJ via Hedgeweek); 2025 average +56.6% across funds (PaiPaiWang via Bloomberg/Business Times); one fund −15.7% in the week to 17 Jul 2026 (Hedgeweek)
- Regulators
- China Securities Regulatory Commission (CSRC); Asset Management Association of China (AMAC) for registration; Shanghai and Shenzhen stock exchanges and China Financial Futures Exchange for trading; Hong Kong SFC for the HK unit
- Signature moves (incl. failures)
- Founding (2008–16); all strategies onto AI (2016–21); the Fire-Flyer clusters (2020–21); closing to new money and the Q4 2021 drawdown and apology (failure); spinning out DeepSeek (2023); the 2024 quant quake and exit from market-neutral (failure); the 2025 long-only rebound and 2026 drawdowns
7 strategic moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
2015
Founding High Flyer
Founding or fund launch
2017
All Strategies onto AI
Technology or infrastructure bet (AI) / strategy pivot
2020
Fire Flyer Clusters
Technology or infrastructure bet (owned GPU supercomputers)
2021
Closing to New Money and the Q4 Drawdown
Capital decision (closing to new money) / loss, drawdown or blow-up response
2023
Spinning Out DeepSeek
Hiring, spin-out or partner departure (a non-trading spin-out funded by trading profits)
2024
Quant Quake and Market Neutral Exit
Loss, drawdown or blow-up response / closing a strategy
2025
Long Only Rebound and 2026 Drawdowns
Strategy pivot (long-only focus) and its outcome