Tue, Aug 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
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

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. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  2. Activist News - Celgene says patent-fighting hedge fund manager wants to short its shares[more]

    From Reuters.com: Celgene Corp, one of the world's largest biotechnology companies, has accused U.S. hedge fund manager Kyle Bass of attempting to profit from his attempts to wipe out several major drug patents through his Coalition for Affordable Drugs. The company asked the U.S. Patent and T

  3. Einhorn's Greenlight Capital hedge fund slumps 6.1 percent in July[more]

    From Reuters/Thefiscaltimes.com: Hedge fund mogul David Einhorn's Greenlight Capital slumped 6.1 percent in July and is now down 9 percent for the year after gold, one of the fund's top holdings, tumbled to five-year lows last week. Greenlight notified clients of its returns late on Friday, ac

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner