Thu, Jun 20, 2013
A A A
Welcome Guest
Free Trial RSS
New! Family Office and Investor Database with 11,750 contacts
Alternative Market Briefing

Investors looking for alpha in Asia-focused hedge funds must focus on small funds
Thursday, December 01, 2011

amb
Peter Douglas From Komfie Manalo, Opalesque Asia:

In Asian hedge funds universe, size does matter – or the "lack" of it. According to Singapore-based hedge fund data provider GFIA pte ltd the smaller the size of a hedge fund in Asia, the better it is for investors.

In its latest client monthly newsletter, GFIA, which is also a specialist in skill-based managers in Asian and emerging markets, said that the sweet spot for performance in Asia-focused hedge funds has decreased to 2004 levels.

"Investors seeking performance must focus on smaller funds," GFIA’s multi-year study of the relationship between a hedge fund’s size and its performance found.

Peter Douglas CAIA, principal of GFIA, commented: "We’ve always felt that alpha is a function of small asset size. But the economics of a hedge fund business are such that the industry would dearly love us to believe that alpha is scaleable. Yet again our research has demonstrated that, although the optimum size of a hedge fund in Asia is fluid over time, it’s never large, and, right now, it’s particularly small."

Douglas said the study offers a comprehensive analysis of the effect of size on performance and volatility across the four largest strategy groups. It found that the current sweet spot is surprisingly small for Asia-focused hedge funds. Asian funds with assets between $30m and $75m are likely to produce the best risk adjusted and absolute r......................

To view our full article Click here
Article link
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. GAIM delegates hear fund of funds fees are increasingly discounted[more]

    Beverly Chandler, Opalesque London: Reporting from the GAIM conference in Monaco, CooConnect finds that funds of funds are taking action over their fees. The site writes: "Funds of funds have insist

  2. Multifonds’ white paper reflects on the likely impact of AIFMD[more]

    Beverly Chandler, Opalesque London: Investment software provider Multifonds has published its white paper, entitled: The impact of AIFMD and convergence survey. Key findings from the survey include: 83% of respondents agree convergence o

  3. Swiss funds increased by CHF 100bn ($829bn) year on year[more]

    The Swiss Fund Association has announced that in May 2013, the volume of assets placed in the investment funds covered by the statistics compiled by Swiss Fund Data AG and Lipper reached around CHF 763 billion, a slight rise of CHF 2.6 billion month-on-month. This represents a marked increase of jus

  4. GAIM Conference – Hedge funds brace for renewed debt crisis, Hedge fund managers don hairshirts and ‘impact investing’ at Monaco meet[more]

    Hedge funds brace for renewed debt crisis From Indiatimes.com: The euro zone's debt crisis may be far from over, while Japan's money-printing gamble to revive its economy could destabilize global markets if it doesn't work, some hedge fund managers say. They are taking the view that the

  5. Expertise on shipping related investments: Shipping related investments are unique. Firstly, shipping investments tend to show almost no correlation with other asset classes such as equity or bond markets *. Secondly, we believe, no other asset class reflects the global demand and original trade as accurately as the shipping industry does. A
Click here for More about Opalesque Tracking
- A new, unique Premium Service -
  1. One William Street
  2. Securis
  3. Haymarket
  4. Cantab
  5. Credit Suisse Asset Management
  1. man group
  2. managed account
  3. Ucits
  4. people
  5. King Street