Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Emerging managers face higher barriers to entry in Asia

Friday, January 19, 2018

Bailey McCann, Opalesque New York for New Managers:

New hedge funds are launching every day in Asia, according to delegates at the recent Opalesque Hong Kong Roundtable, but staying in business is a tall order.

"In the past, a manager who had a tough first or second year would have hung on hoping to grow out of it. But lately, we have seen managers closing their business within the first year because they have faced performance challenges or they have come to the conclusion that the market will not buy their strategy," explains Theodore Qi Shou, CFA, CAIA, Chief Investment Officer, Director at Skybound Capital. "Despite an increased supply of new managers, the threshold for starting a new hedge fund has increased significantly."

According to Qi Shou not only is it harder to outperform in Asian markets, fund managers must now launch with considerably higher AUM in order to be viable. "In the past, it was not uncommon to see a $5 million startup hedge fund here in Asia, but now, that threshold is at least $50 million," he says.

Crowded markets

Because Asian markets tend to have fewer listed companies and lower trading volumes it can be hard to outperform other equities managers. In some cases, if traders aren't in the same names as everyone else, they can see performance take a big hit. Whereas if a manager is in Alibaba or Tencent, they......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1