Mon, Apr 23, 2018
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its