Mon, Jul 6, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Breaking the myth: Asian long short hedge funds are not all the same – GFIA

Wednesday, August 04, 2010

Opalesque Industry Update - GFIA pte ltd, the Singapore based specialist in skill-based managers in Asian and emerging markets, has released a study on the gross and net exposures of the Asian long/short universe, and its effect on the resultant performance.

In this paper, GFIA discussed the myth of the homogeneity of the Asian long/short hedge fund universe. GFIA’s study confirmed that managers run very diverse shapes of portfolios, thus producing wide dispersions of returns.

Findings include:

• The difference between the maximum and minimum gross exposures ran by managers reached a high of 320% in June 2007.

• In the five largest monthly market moves in the last three years, the average performance difference in that month between the 25th and 75th percentile manager return was 8%, and the average difference in that month between best and worst fund was 25%1. Funds show greatest dispersion of returns in months’ with outlier performance in either direction, demonstrating that managers make active investment decisions and run distinct portfolios.

Peter Douglas CAIA, principal of GFIA, commented: “Although over half the Asian hedge fund universe, and almost half of the last 12 months’ new launches, are long/short equity funds, it’s a mistake to see this as evidence of a lack of diversity in the Asian hedge fund industry. The long/short strategies we see encompass a very broad range of investment approaches and risk profiles.”

(press release)

www.gfia.com.sg


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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner