Old World concept conquers new Asian wealth - Asian hedge funds set to benefit
The lack of performance of Asian hedge funds over the last five or 10 years compared with competitors from the U.S. and Europe made it more difficult for them to raise money. However, Japan's “Abenomics” has been a game changer that has put Asian hedge funds back into focus. With more dispersion in stock prices and decreasing correlation across markets, markets are now beginning to reward skill-based strategies again.
The second and even third generation of Asian hedge fund managers spinning out now comes with much better experience of portfolio construction than those who set up pre-crisis. That is a major development and improvement, because while Asian managers have always been very good at generating ideas, their weak point was often the actual portfolio construction and delivery of consistent returns, and this new generation is beginning to understand and develop that. But investors are cautioned to be selective, as “a lot of refugees from prop desks” who felt that starting a hedge fund was a natural career progression when coming out of investment banks delivered bottom quartile returns.
The 2013 Opalesque Singapore Roundtable, sponsored by Eurex, Taussig Capital and Eurofin Asia Group, took place on April 23rd in Singapore with:
Christian Stauffer, Eurofin Asia Group
David Walter, PAAMCO
Peter Douglas, GFIA
Edward Moon, Woori Absolute Partners
Yingwen Chin, Nutrimenta
Sylvain Baude, Oclaner
Henk Huitema, EUREX
The group discussed:
Family Offices in Singapore – old world concept conquers new Asian wealth:
What are Asian family offices’ strategies and instruments for wealth generation and preservation?
Why is Singapore the destination of choice for global family offices setting up in Asia? What is important for them?
What is the most important criteria for Asian family offices when investing into hedge funds?
Asian Hedge Fund Update:
What was the best performing hedge fund strategy in Asia over the past few years?
What is the appropriate return investors can expect from Asian hedge funds?
Which investor types started to look beyond the big multi-strat hedge funds and express demand for exposure and alpha generation from emerging managers?
In what respects are the second and even third generation of Asian hedge fund managers spinning out now different from the earlier generation?
Cost structures: Is it still possible to start a fund with $10m, $15m or $20m in Singapore?
Finding Yield and Alpha in Asia:
Where do investors find yield and alpha in Asia right now?
Is it true that what in Asia appears to be pure alpha is very often tail risk in disguise?
Japan or China? What's Asia's biggest opportunity right now?
From “body-shopping” to new forms of co-operation: what's happening between allocators and investors
After the recent regulatory changes, is Singapore still one of the easier places for asset management companies to do business?
New instruments: Eurex prepares Taiwanese TAIEX options and futures to be traded overnight, launches derivatives on MSCI World, MSCI Europe, MSCI Asia Pacific ex-Japan and MSCI Frontier Markets Index.
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