Sat, Feb 6, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFR: Capital flows to Asian hedge funds stall in Q1-10, reflecting continued concerns about strategic and regulatory risks

Tuesday, May 04, 2010
Opalesque Industry Update - Investors pare new allocations on risk, regulatory concerns; developed Asia performance tops Emerging in 1Q10

Following two consecutive quarters of capital inflows, the Asian hedge fund industry saw net redemptions of approximately $700 million in the first quarter of 2010, reflecting continued concerns about strategic and regulatory risks, according to data released today by Hedge Fund Research, Inc. (HFR), the leading provider of data and analysis of the hedge fund industry. The $700 million in investor withdrawals was offset by a performance-based increase of $1.5 Billion, resulting in total assets invested in Asia-focused hedge funds increasing to just over $77 billion; the number of Asian hedge funds declined modestly during the quarter to 1,036.

Although the redemption was modest in a relative sense, it is a significant divergence from recent trends in the overall hedge fund industry, which experienced an inflow of $13.7 billion. Asian hedge funds continued to outperform equity benchmarks; the HFRX Japan Index gained +7.6 percent in 1Q10, while the HFRX China Index was down -0.75 percent. 1Q10 was the first quarter since the financial crisis in which Developed Asian hedge funds outperformed Emerging Asian funds.

Within the Asian hedge fund industry, Equity Hedge and Event Driven strategies, which include Distressed and Shareholder Activist funds, have seen the most significant increases in assets since 1Q09. The percentage of capital in Asian Equity Hedge funds in nearly twice that of the overall industry, with much less capital focused on Macro and Event Driven strategies.

“Asian hedge funds were confronted with a variety of divergent market influences in the first quarter, and investor flows to Asian hedge funds reflect this,” said Ken Heinz, President of Hedge Fund Research, Inc. “Sovereign credit risk has moved to the forefront of investor concern, concurrent with a cyclical upturn in developed markets based on improving earnings and corporate credit, falling equity market volatility and continued regulatory pressure on hedge funds and financial institutions. In this environment, funds which can access these market dynamics with flexible, opportunistic strategies are likely to outperform and attract new investors.”


HFR coming to Asia, announces Industry Summit: Asia 2010
Hedge Fund Research has also announced that it will host its HFR Industry Summit: Asia 2010 in Hong Kong on September 16th & 17th at The Four Seasons Hong Kong. The HFR Industry Summit is the hedge fund industry’s premier private investor engagement, hosted annually in Chicago and London, and this will mark the event’s inaugural appearance in Asia.


Hedge Fund Research, Inc. (HFR) is the global leader in the alternative investment industry. Established in 1992, HFR specializes in the areas of indexation and analysis of hedge funds. www.hfr.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. How Einhorn survived a nightmare year[more]

    From Bloomberg.com: Even when a hedge fund has an awful year, which was the case for David Einhorn's Greenlight Capital, there are lessons to be learned. Many funds would have had a tough time surviving a year like Einhorn experienced in 2015, when all the stars seemed to align against him and Green

  2. Legal - Hedge fund founder wins early release in U.S. insider trading case, Gramercy seeking $1.3 billion from Peru over land-bond dispute[more]

    Hedge fund founder wins early release in U.S. insider trading case From Reuters/Streetinsider.com: Former hedge fund manager Doug Whitman on Tuesday won a reprieve from serving the remainder of his two-year sentence for insider trading after several judges expressed skepticism that his 2

  3. Investing - David Einhorn finds a winner in Michael Kors[more]

    From Thestreetinsider.com: Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking pro

  4. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  5. Computer-driven hedge funds make money during January’s selloff[more]

    Komfie Manalo, Opalesque Asia: Commodity trading advisers (CTAs) that use computer programs to guide how they trade, made millions of dollars during last month’s market selloff on the back of declining oil prices and global equities and big moves in currencies. Data provider