Hong Kong-based asset manager Anatole has “dramatically” reduced its exposure to China and will reallocate funds to US companies as it warned that the world’s biggest emerging market had become a “deserted dry land” for investors.

Anatole had focused its investments on long-term bets on Chinese companies since it was founded in 2016. But in a letter to investors this week, seen by the Financial Times, George Yang, Anatole’s chief investment officer, apologised for recent losses incurred by the fund because of its “misjudgment on China”.

Yang said: “The most skilful hunters would still suffer in a deserted dry land?.?.?.?we need to go back to the first principle of choosing hunting grounds: deploy capital to where we see the longest duration and the greatest companies.”