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Alternative Market Briefing

A $20m hedge fund in Singapore cannot be profitable

Thursday, May 16, 2013

Christian Stauffer
From Komfie Manalo, Opalesque Asia:

Starting a hedge fund with $20m or less in capital in Singapore is no longer profitable said Christian Stauffer, founder and CEO of Eurofin Asia Group (EFA). Stauffer was one of the guests in the latest 2013 Opalesque Singapore Roundtable.

The 2013 Opalesque Singapore Roundtable was sponsored by Eurex, Taussig Capital and Eurofin Asia Group and took place on April 23rd in Singapore.

"Focusing on costs is a wise thing for both investors and managers. Even in Singapore costs have risen significantly, and this trend will clearly continue," Stauffer said and added, "I am not sure if a manager running $50m can still be profitable here. I remember back in the early 2000s we were saying if someone set up in London or New York, they would probably need $50m or $70m, while here one used to be able to start a fund with $10m, $15m or $20m. I don’t think this is possible anymore. There is the regulatory cost, there are all sorts of ancillary costs, and on top the markets have generally been difficult. So not all of the smaller guys will make it, there is a risk they will fold."

He explained that moving forward, the Asian hedge funds space needs a new paradigm and a more intimate ......................

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