Fri, Oct 28, 2016
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 (, +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.


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. Investing - Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities, Lansdowne's Roden says likes animal genetics company Genus[more]

    Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities From As ValueWalk reported back in February, earlier this year Andrew Lawrence set out to raise $250 million to $500 million for a fund that will buy stakes in hedge funds that have suspended redem

  2. Other Voices: Don’t mistake style for skill — The impact of style factors on trend follower performance[more]

    By John Dolfin, CFA Chief Investment Officer and Christopher Maxey, CAIA, Senior Portfolio Manager of Steben & Company: Managed futures have become an alternative asset class that is widely used by investors seeking overall portfolio diversification and absolute returns independent of the

  3. Opalesque Roundtable: Style drift, poor communications and credibility fatigue are biggest red flags for hedge funds investors[more]

    Komfie Manalo, Opalesque Asia: Style drift, poor communications and credibility fatigue are the biggest red flags for hedge funds investors, said participants of the latest 2016 Opalesque Investor Roundtable, sponso

  4. Barclay CTA Index down 0.40% in September (+0.10% YTD)[more]

    Managed futures traders lost 0.40% in September according to the Barclay CTA Index compiled by BarclayHedge. The Index is up 0.10% year to date. “The US Fed, in spite of its hawkish tone, opted to hold rates steady which roiled financial markets,” says Sol Waksman, founder and president of BarclayHe

  5. Opalesque Exclusive: Meet Emma, your friendly A.I. helper[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Shaunka Khire, who co-designed an artificial intelligence (AI) robot called EMMA/MANSI, talks to Opalesque