Fri, Sep 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds investing in Greater China attract investors, but fail to deliver returns

Thursday, September 20, 2012

From Komfie Manalo, Opalesque Asia:

China’s decision to allow foreign hedge funds to set up operations into the country seemed to be paying off as latest data from Eurekahedge showed an increase of investor allocations to Greater China-focused hedge funds despite failing to provide profits.

In a report, AsianInvestor.net said that Greater China-focused strategies now accounts for 13.5% of the $125.5bn in Asian hedge fund assets, from 4.4% in 2006 and cited Eurekahedge’s data that China has been attracting hedge funds over the past several years.

However, the inflows are not being rewarded with the desired returns as Greater China hedge funds lost an average of -13.05% last year.

Indeed, China’s investment prospects are marked with losses. Another hedge fund data tracker Hennessee reported that investors are expecting a possible hard landing in China as key economic indicators suggested that a more significant slowdown than previously anticipated.

"Managers suffered losses in China growth bets as the markets declined. Emerging markets were negative as the MSCI Emerging Markets Index fell -0.54% (+3.38% YTD), mostly due to losses in China and Latin America," Hennessee said in its latest market report.

In late August, ......................

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. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  2. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style

  3. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  4. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  5. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity