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

HFRX Japan Index gains 0.51% in Q1-11 despite Nikkei plunge and Yen volatility, while inflows in Asia hedge funds increased by $4.6bn to $88.1bn

Thursday, May 05, 2011

Kenneth J. Heinz
Opalesque Industry Update Asian-focused hedge funds posted steady gains in the first quarter of 2011, a volatile quarter for Asian financial markets dominated a continuum of dramatic developments, including economic, financial, environmental, social and secular. Capital invested in the Asian hedge fund industry increased by over $4.6 Billion to approximately $88.1 Billion (JPY: 7.15 Trillion; Chinese Yuan: 573 Billion) to reach the highest level since peaking in 2Q08, according to Chicago-based HFR, the leading provider of information and analysis of the global hedge fund industry.

Japanese-focused hedge funds lead other Asian regions in 1Q11, with the HFRX Japan Index gaining +0.51 percent for the quarter; this result is inclusive of a decline of -3.34 percent in March. Asian market volatility spiked in mid-March, with Nikkei declining over -15 percent intra-month while the Japanese Yen appreciated sharply to a 15 year high against the U.S. dollar. Encompassing the Asian region more broadly, the HFRX Asia Composite Index posted a narrow gain of +0.02 percent for the quarter; the broad-based HFRI Fund Weighted Composite Index posted a gain of +1.7 percent for 1Q11.

Investors allocated over $3.6 Billion in net new capital to Asian hedge funds in 1Q11, which represents more than 10 percent of the $32 Billion in new capital allocated to hedge funds globally in the quarter. This marks the largest quarterly inflow of capital to Asian hedge funds since HFR began publishing Asia-specific capital flows. The number of hedge funds investing primarily in Asia increased to 1055 funds, also the highest number since 2Q08.

Hedge funds investing primarily in Developed Asia produced a wide dispersion of performance for the month of March; nearly 40 percent of these produced positive performance while less than 5 percent posted losses larger than the decline of the Nikkei 225. Outside of Developed Asia, the HFRI Emerging Markets: Asia ex-Japan Index gained +2.33 percent in March, ending 1Q11 with a decline of -1.72 percent.

Asian hedge funds, and particularly those focusing primarily on Developed Asian equity and currency markets, demonstrated both tactical flexibility and opportunistic exposure adjustments by preserving early quarter gains through the volatile March period, said Kenneth J. Heinz, President of HFR. As the Japanese economy begins the process of recovery from the natural and environmental crises, the Asian hedge fund industry represents a powerful marketplace for global investors to access this recovery and for Asian institutions to access global investment capital.

HFR opens Asian office in 1Q11
In consideration of the increasing significance of the Asian hedge fund industry to both global investors and the overall hedge fund industry, HFR is pleased to announce the opening of the HFR Asian office in 1Q11. The office will focus on both increased awareness of developments in the Asian hedge fund industry, as well as client service to the large and growing audience of investors utilizing HFR research. The HFR Asia office is now open and located in China and managed by Mr. Josh Gu, Director of Quantitative Research and Asian Distribution (jgu@hfr.com, +86.15928870321)

(press release)

HFR (Hedge Fund Research, Inc.) is the global leader in the alternative investment industry. Established in 1992, HFR specializes in the areas of indexation and analysis of hedge funds. HFR Database, the most comprehensive resource available for hedge fund investors, includes fund-level detail on historical performance and assets, as well as firm characteristics on both the broadest and most influential hedge fund managers. www.hedgefundresearch.com

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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