Tue, Apr 28, 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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner