Singapore hedge fund Asia Genesis Asset Management is closing down its flagship macro fund after making "big mistakes" and suffering an "unprecedented drawdown" due to wrong-way bets on Chinese and Japanese stocks. According to a letter to fund investors, the firm is returning money to investors to avoid further losses. The fund saw an outflow of about 19% in the first few weeks of January. Chua Soon Hock, founder and chief investment officer of Asia Genesis, admitted to making big mistakes in the recent sharp moves of the Nikkei and Hang Seng indexes. He expressed astonishment at the pricing of Chinese and Japanese stocks at the same value as in 1991, despite current economic realities. The closure comes as China's stock market experiences a rout and Japanese stocks rally. Asia Genesis Macro Fund lost 18.8% in the first weeks of January due to losses on long Hong Kong and China equities positions and short Nikkei bets. The fund managed $330.2 million at the start of the year.