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Dhawal Mehta From Komfie Manalo, Opalesque Asia - Asia's economic success story has failed to provide Asia-focused hedge funds with alpha, said a Bloomberg report citing data from Singapore-based data provider Eurekahedge Pte.

The report quoted Eurekahedge's Asian index which tracked 395 hedge funds in the region that returned 1.6% as at end August. The figure was the worst performer among regions and about half the 3.2% gain by the global benchmark.

It added that the poor performance of Asia-focused hedge funds was due the concentration on Asian equity due to the lingering European debt crisis and the economic slowdown in China. The report quoted Dhawal Mehta, head of India equity investments at Reliance Asset Management (Singapore) Pte., as saying, "Most Asian funds have been focused on the equity space and that hasn't done well. In the U.S. and Europe, you have more variety in terms of the kind of funds."

Asian hedge funds saw an estimated $447m withdrawals so far this year and 73 fund closures. A separate figure from Chicago-based Hedge Fund Research showed that 77% of the region's hedge funds are equity related compared to 46% across the globe.

Data from Eurekahedge added that Asian hedge funds declined 8.3% last year, the second-worst performance after 2008. Sinc......................

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