Sun, Mar 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund managers see Asia-focused funds cheaper by 43%

Tuesday, December 10, 2013

Komfie Manolo, Opalesque Asia:

The majority of hedge fund managers in North America, Europe and Asia believes that running a hedge fund in the Asia-Pacific region is cheaper by some 42% compared to operating the same in Europe or the U.S., mainly because of lower-than-average salaries in the region.

A survey of 124 hedge fund managers in North America, Europe and Asia with an aggregate assets of $465bn by Citigroup also found that small funds in the Asia-Pacific region face a major challenge, particularly in raising revenues and expanding its assets.

Bloomberg quoted Citigroup as saying, "A critical success factor in the launch of a hedge fund is the size of assets under management at launch. Small fund launches in Asia have demonstrated a statistically reduced chance of accelerated assets under management growth."

Asian hedge fund managers are also faced with the pressure to cut fees, together with their Western counterparts, to attract investors and raise assets amidst rising costs due to compliance with new regulations. Data showed that the average Asian hedge fund launches this year raised $8m compared to about $25m before the 2008 global financial crisis.

The report added, "It is likely that, initially, any excess cash may need to be reinvested into the business to ensure an institutional-grade infrastructure is in place......................

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