Tue, Jul 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Politics and policy drive year-end gains for Asian hedge funds says HFRX

Thursday, February 07, 2013

HFRX reported that the Asian hedge fund industry posted strong gains to conclude 2012, led by hedge funds investing in China, India and Japan, as capital invested in the Asian hedge fund industry increased by 7.5% for 2012, according to the latest HFR Asian Hedge Fund Industry Report, published by HFR.

Total hedge fund capital invested in the Asian hedge fund industry increased to $88.25 billion (¥ 8.17 trillion, RMB: 555 billion), the highest level since 2007, prior to the financial crisis, the firm reported. Total capital increased by $3.9 billion in 4Q12 on a net new inflow of $1.17 billion concentrated in Emerging Asia. Total capital invested in the hedge fund industry globally increased to a record level of $2.25 trillion (¥ 208 Trillion; RMB 14 Trillion) as of year-end 2012.

The HFRX China Index posted a gain of +8.0% for 4Q12 and +9.4% for the full year, in line with the 4Q gain for the Shanghai Composite but outperforming Chinese equities for the full year as economic growth and inflationary pressure slowed into year end. The volatile HFRX India Index gained +4.3% for 4Q12 and +27.6 for 2012, topping the gain of the Mumbai Sensex 30 and leading all regional hedge fund indices for 2012.

Japanese elections and the ensuing economic policy stimulus resulted in strong year end gains for the Nikkei 225 and a sharp decline in the Japanese Yen, which traded at a 27-month low against the US dollar. The HFRX Japan Index gained +2.5% in 4Q12 and +8.1% for 2012, trailing the strong year end gain for Japanese equities. The HFRX Korea Index posted a narrow decline of -0.25% in 4Q12, in line with the Kospi Index.

The total number of Asian hedge funds increased by +5.3% in 2012 to nearly 1,150 with almost a third (31.7%) of all Asian hedge funds are located in China, an increase from 28.6% as of year-end 2011. The percentage of Asian hedge funds located in Japan and India also increased in the past year, while the percentage of funds located in Singapore and Australia, which represent the second and third largest share of Asian-domiciled fund locations, declined in 2012.

"The Asian hedge fund industry was well positioned for the series of important Asian macroeconomic developments which occurred in the 4Q, including moderating growth throughout Emerging Asia, the Japanese elections and the dramatic impact of the BoJ stimulus plan and inflation target increase on Japanese currency and equity markets," stated Kenneth J. Heinz, President of HFR. "Asian investors continue to exhibit preference for tactical exposure to powerful trends in Japanese currency and equity market trends with a bias toward continued weakening of the Japanese Yen. As this dynamic environment continues to evolve, Asian-focused Equity Hedge and trend-following, quantitative Macro Systematic CTA strategies are likely to capture and benefit from these powerful trends."

 
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.
Asia Pacific Intelligence
Asia Pacific Intelligence
Asia Pacific Intelligence
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. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  3. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  4. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

  5. Investing - Carlyle teams with TCW in push for ordinary investors[more]

    From Bloomberg.com: Carlyle Group LP isn’t backing down from its goal of offering alternative strategies to the masses, despite early setbacks. The Washington-based firm is teaming up with TCW Group, which is majority owned by Carlyle funds, to offer three vehicles that give ordinary investors acces

banner