Industry Updates

GFIA: Most of the new Asian hedge funds were started by second generation managers YTD

Thursday, December 02, 2010

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Opalesque Industry Update - New Asian hedge fund managers come with experience

In its most recent client monthly newsletter, the Singapore based specialist in skill-based managers in Asian and emerging markets, GFIA pte ltd, provided an overview of the newly launched Asian hedge managers or funds that incepted during 2010. GFIA’s study confirmed that most of the new firms seen so far were started by second generation hedge fund managers from either large hedge fund houses, or previous successful boutique funds.

Summary findings include:

 Of the 18 funds in GFIA’s list, 5 are not newly set up management companies.

 Of 13 new hedge fund management companies reviewed this quarter, only two had portfolio managers without previous hedge fund management experience.

GFIA pte ltd, the Singapore based specialist in skill-based managers in Asian and emerging markets, also released findings on how the correlation between different hedge fund strategies and their benchmark indices within a seemingly diversified portfolio changed during the credit crisis, concluding that equity long-short strategies became more correlated after the global financial crisis, while non-equity long-short strategies maintained their low cross-correlations.

Peter Douglas CAIA, principal of GFIA, commented: “The Asian hedge fund landscape is changing rapidly. New managers know their trade already, and they don’t accept that a hedge fund should be naturally net long or an extension of a mutual fund”.

(press release)

About GFIA
The GFIA group of companies was founded by its principal, Peter Douglas, CAIA, FICP. In January 2010 an Asia-based family became a substantial strategic shareholder in the group holding company. GFIA has no corporate affiliations. Peter Douglas is also a director of the Chartered Alternative Investment Management Association (CAIA). He established the Singapore Chapter of the Alternative Investment Management Association (AIMA) and was the inaugural AIMA Council Member for the Asia Pacific region. Four of GFIA’s team are CAIA charterholders. The GFIA group’s non-executive chairman is Paul Smith, CEO of Asia Alternative Asset Partners Limited (Triple A Partners). rachel@gfia.com.sg - peter.douglas@gfia.com.sg

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