Sun, Feb 1, 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. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would