Thu, Jul 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Japan funds navigate volatility as equities plunge in Q2

Friday, August 10, 2012
Opalesque Industry Update: Hedge funds investing in Japan/Developed Asian markets quickly shifted to defensive positioning in 2Q12, protecting investor capital as Japanese equities plunged over 10 percent in 2Q12, according to the latest HFR Asian Hedge Fund Industry Report, released today by HFR, the global leader in the indexation and analysis of the global hedge fund industry.

The HFRX Japan Index posted a narrow decline of -1.5 percent in 2Q, a sharp reversal from 1Q gains of +5.2 percent. Hedge funds investing in China experienced declines similar to that of Japan in 2Q, with the HFRX China Index falling -1.6 percent, while the HFRX Asia with Japan Index declined -2.4 percent. Hedge funds investing in other Emerging Asian economies fell more sharply, as the HFRX India Index and HFRX Korea Index declined by -8.4 and -10.8 percent, respectively, in 2Q12. These losses followed 1Q gains of +19.2 percent for the HFRX India Index and +6.3 percent for the HFRX Korea Index.

Investors allocated a modest $88 Million in net new capital to Asian focused hedge funds in 2Q, with flows concentrated in Japan focused funds. Despite the inflow, total capital invested in the Asian hedge fund industry declined by $3.3 Billion, bringing total capital dedicated to the region to $83.3 Billion (6.55 Trillion Japanese Yen; 542 Billion Chinese renimbi).

The number of Asian focused hedge funds increased to 1,117, with these representing nearly 15 percent of total global hedge funds. In addition, HFR’s most recent data shows the rate of new hedge fund launches and liquidations specific to the Asian hedge fund industry continues to exhibit more favorable dynamics than the global hedge fund industry as a whole. Finally, the trend toward Asian focused funds operating their headquarters locally also continued, with China, Japan and Australia all experiencing an increase in the percent of Asian hedge funds in these countries.

HFR launches 3 new HFRX Indices

HFR is pleased to launch the following new HFRX Indices, expanding the family of HFRX Indices to 76. Consistent with many of the current HFRX Indices, each of the following includes daily performance transparency. For more information, please visit www.hfrx.com

  • HFRX Emerging Markets Composite Index includes multiple hedge fund strategies with geographic exposure to one or more Emerging Markets regions and combination of asset classes with emphasis on global macroeconomic, political or specific secular market growth trends.
  • HFRX Fixed Income - Credit Index includes strategies with exposure to credit across a broad continuum of credit sub-strategies. The investment thesis across all strategies is predicated on realization of a valuation discrepancy between the related credit instruments.
  • HFRX MLP Index includes Master Limited Partnership strategies which are typically exchange listed partnerships that engage in certain businesses, mostly pertaining to the transportation, extraction and storage of certain commodities and natural resources including, but not limited to, oil, natural gas and coal.

“Asian hedge funds were subjected to tremendous volatility and a sharp reversal of 1Q gains in 2Q12, with Japanese and Chinese funds navigating these changes with tactical flexibility and positive contributions from Quantitative Macro, Event Driven and Fixed-Income based Relative Value Arbitrage strategies,” said Kenneth J. Heinz, President of HFR. “The Asian hedge fund industry is rapidly developing in sophistication, breadth, depth and global reach with funds implementing dynamic commodity and currency-based strategies across local regions, including mainland China. These innovative Asian hedge funds are likely to provide global performance leadership and attract capital from US, European and Emerging Markets investors seeking new growth opportunities in coming quarters.”

HFR

Press Release

BM

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. 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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  3. 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

  4. 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.

  5. 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

 

banner