Sun, Apr 20, 2014
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   |   
Banner
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. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo