Magic Square Quant made a staggering 57% profit last year, ranking second among quantitative funds with assets over 10 billion yuan!

In 2025, Ubiquant ranked second among China’s quantitative funds with over 10 billion RMB in assets, thanks to an average return rate of 56.6%. Its strong performance is providing robust financial backing to its AI spin-off, DeepSeek.

According to SimuPaiPai data, Ubiquant ranks second among Chinese quant funds with more than 10 billion RMB under management, second only to Ningbo Lingjun’s return rate of over 70%. Wenfeng Liang still holds the majority stake in this asset management company, which stopped accepting external funds several years ago.

Ubiquant’s outstanding performance may bring even more financial support to DeepSeek. DeepSeek, controlled by Wenfeng Liang, was incubated in 2023 by Ubiquant. According to industry estimates, assuming a 1% management fee and a 20% performance fee, the fund’s strong results last year may have generated more than $700 million in revenue. This is vastly more than DeepSeek’s previously announced budget of under $6 million to develop its core AI model.

Although some industry competitors remain skeptical about this cost claim, there is no doubt that the parent company’s strong financial resources provide it with support well above the industry norm.

Comprehensive Shift in Quant Strategies Drives Performance

Ubiquant’s outstanding results are rooted in its precise strategic transformation. In 2024, the company fully exited market-neutral strategies, shifting its focus to pure long-only products aimed at outperforming stock benchmark indices—this adjustment has become the core driver of its growth.

In terms of performance, SimuPaiPai data shows that two products managed by co-founder Jin Xu delivered an average return of 58.6%; CEO Zheng Lu’s eight products averaged a 56% increase. Notably, as of December 19 last year, the stock strategy managed by Zheng Lu achieved a Sharpe ratio as high as 2.8, ranking first in risk-adjusted returns among leading quant firms.

This successful financial business has provided a solid foundation for the company’s tech incubation. Founder Wenfeng Liang has explicitly stated that the research carried out by its AI spin-off, DeepSeek, is supported by Ubiquant’s R&D budget.

A Bumper Year for China’s Quant Industry

Ubiquant’s excellent results are not an isolated phenomenon—they reflect an overall bumper year for China’s quant industry in 2025. Data shows that Chinese quant funds achieved an average return of 30.5% last year, more than double the global average for their peers.

The divergence between strategies was clear, with pure long-only strategies especially outstanding, posting an average return rate of 35%, more than 10 percentage points higher than active long-only strategy funds. The sector’s strong performance also drove a concentrated expansion in assets under management: by the end of November last year, the number of quant fund firms managing more than 5 billion RMB had rapidly grown from 63 at the end of 2024 to 91.

It should be noted that this ranking is based on product data voluntarily reported by each fund manager. Due to tighter information disclosure requirements implemented by regulators in 2025, the sample pool included in the statistics is narrower than before.

Risk Warning and DisclaimerMarkets have risks; investment should be cautious. This article does not constitute personal investment advice and does not consider users’ specific investment goals, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are appropriate to their situation. Acting on this information is at your own risk.