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Natalie Cruz Bailey McCann, Opalesque New York:
The Asian hedge fund industry is estimated at approximately $126bn across 800 managers; 35% of those Asian focused funds are located outside of the region, and they tend to underperform their Asian counterparts - according to new data from Gottex Penjing Asset Management. The data reflects the rapid pace of hedge fund growth focused on the region - since 2000, the Asian hedge fund industry has grown 550% from $19bn to $126bn, a pace which is likely expected to continue as more Asian governments take steps increase access to their markets.
Looking at the period of October 2001-July 2006, Gottex data shows that Asian domiciled managers outperformed Asia focused but non-domiciled managers by 36%. During the crisis, both sets of managers were down roughly in the same range -26% for Asia domiciled managers and -29% for non-domiciled managers respectively. In 2009, following the crisis, fund performance largely returned to pre-crisis levels with Asian domiciled managers up 32% over their non-local counterparts.
Some 1300 funds make up the Asian hedge fund market overall, but few of them have yet to join the billion dollar club the report notes. Despite that, investors now see Asia as a means of gaining equities exposure with better returns than they might otherwise see in more developed markets such as the US and Europe. 50% of Asian hedge funds are equities focused, and according to data from Eurekahedge, comparing the Asian Hedge Fu...................... To view our full article Click here
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