Tue, Mar 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

India hedge funds struggle in competitive market

Tuesday, April 30, 2013

From Komfie Manalo, Opalesque Asia – Indian hedge fund managers are struggling to attract investors but hope to succeed where their much larger foreign counterparts don't, reports India Times, citing some local fund managers who produce double-digit returns.

In a nation where investors prefer stocks, local hedge fund managers, who enjoy the advantage of first-hand information on the local market and the lack of foreign currency exposure, face a huge challenge to convince investors to shift to an unfamiliar investment style (such as long/short equity) and to high fees.

Data from Eurekahedge showed that assets of India-focused hedge funds fell 68 % from 2007 to $2.1bn in March 2013. The Eurekahedge India Hedge Fund Index is down 2.7% (est.) YTD (to March), after returning +12.3% in 2012 and annualizing +5.4% since the index’ inception in January 2000.

But there is a flicker of light for the domestic hedge fund industry in Asia’s third largest economy.

Last week, the market regulator finally SEBI approved 47 alternative investment funds (AIFs), including hedge funds, to operate in India. These AIFs had started registering with SEBI in July 2012.

In May last year, SEBI rel......................

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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner