Sun, Dec 21, 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   |   
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 - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und