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From Komfie Manalo, Opalesque Asia – Big Asia-focused hedge funds are getting bigger as large institutional investors prefer to invest in large hedge funds, according to Albourne Partners Asia head Richard Johnston at a recent conference in Hong Kong.
In a report by AsianInvestor.net it was learned that the majority of institutional investors are allocating to big hedge funds in the region in what one executive described as "the big allocating to the big".
According to Johnston, institutional investors tend to allocate to Asia-focused hedge funds with at least $500m in assets under management.
An independent figure released by Eurekahedge showed that 85% of Asian hedge funds have less than $200m in AuM. Only 6% of the region’s strategies have more than $500m which was a slight increase from only 4% in 2006.
Although Johnston noted that investors have not shown a particular trend towards a specific strategy, but he said there is a growing trend towards "more global portfolios, less Asia-only portfolios or less thematic portfolios" by hedge fund managers.
Separate data from Singapore-based hedge fund data provider GFIA counted only 12 purely Asian focused managers with over a billion AuM as at end June 2012. But the firm added the figure represented less than the total sum of hedged assets in Asia, since they discounted funds with a broad glo...................... To view our full article Click here
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