Sun, Jan 25, 2015
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. Commodities - Druckenmiller alums at PointState make $1 billion on oil, Andurand Capital sees oil sliding to $40[more]

    Druckenmiller alums at PointState make $1 billion on oil From Bloomberg.com: Hedge fund manager Zach Schreiber stood on stage at Avery Fisher Hall in New York eight months ago and made a bold prediction. “We believe crude oil is going lower -- much lower,” Schreiber, 42, told the audienc

  2. Investing - David Einhorn discloses a new position in Time Warner, Canyon trimming bets on mortgage bonds after making $7bn[more]

    David Einhorn discloses a new position in Time Warner From FTLeavenworthlamp.com: …Einhorn also disclosed a new position in Time Warner. "Since 2009, TWX has refocused its business into a collection of high quality assets including basic cable networks (Turner and CNN), a movie studio (

  3. Top performing private equity firms you should invest in[more]

    Komfie Manalo, Opalesque Asia: Professor Oliver Gottschalg of Paris-based HEC Business School, also known as Ecole des Hautes Etudes Commerciales de Paris has released his annual ranking of the top performing private equity firms. The 2014 HEC-DowJones Private Equity Performance Ranking

  4. Comment - Why invest in hedge funds if they don't outperform the market?[more]

    From Forbes.com: Hedge funds have always been a bit exotic and an enigma to some, but bottom line they are supposed to produce good returns using a range of strategies including global macro, event driven and relative value (arbitrage). And, sophisticated or high-net-worth individuals (HNWIs) could

  5. Owen Li 'truly sorry' for blowing up $100m of hedge fund’s assets[more]

    From CNBC.com: A hedge fund manager told clients he is "truly sorry" for losing virtually all their money. Owen Li, the founder of Canarsie Capital in New York, said Tuesday he had lost all but $200,000 of the firm's capital—down from the roughly $100 million it ran as of late March. "I take r