Wed, Aug 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFR: Net inflows to Asian hedge funds exceed flows to both U.S. and European-focused hedge funds in Q2

Friday, August 09, 2013
Opalesque Industry Update - Building on strong recent performance gains, global investors increased allocations to Asian hedge funds in the second quarter with net inflows to Asian hedge funds exceeding the flows to both U.S. and European-focused hedge funds, according to the latest HFR Asian Hedge Fund Industry Report, released today by HFR, the established global leader in indexation, analysis and research for the global hedge fund industry.

Investors allocated over $3 billion of new capital to Asian hedge funds, with new inflows concentrated in Equity Hedge strategies and Japan-focused funds. As of 2Q, total capital invested in the Asian hedge fund industry increased to over $98.4 billion (¥9.6 Trillion Japanese Yen, 602 Billion RMB), the highest level since 2007. Total global hedge fund industry capital increased by nearly $40 billion to a record $2.41 trillion (¥235 Trillion Japanese Yen, 14.7 Trillion RMB) in 2Q13.

Asian hedge fund performance was again led by the HFRX Japan Index, which gained +6.3 percent in 2Q13, bringing YTD performance through June to +18.7 percent. The HFRX Asia Equally Weighted Index, which allocates pro-rata across developed, emerging and blended Asian exposures, posted a gain of +1.4 percent for 2Q and +9.9 percent YTD. The HFRX China Index posted a narrow decline of -0.46 percent for 2Q13, paring the YTD gain for HFRX China to +6.4 percent. China-focused hedge funds have successfully avoided steep equity market declines associated with slowing economic growth and concerns about banking risks, outperforming the decline of -12.8 percent of the Shanghai Composite Index by over 1900 basis points YTD.

Asian capital inflows were led by Equity Hedge strategies, which received a net $2.2 billion in investor allocations; these were complemented by $1.2 billion in performance-based gains. Asian-focused Event Driven and Relative Value Arbitrage funds experienced $390 million and $358 million in net inflows, respectively. Tracking the strong performance of Japanese equities, hedge funds focused on Japan received over $1.7 billion (¥ 171 Billion) in net new capital, bringing total Japan-focused hedge fund capital to $24.8 billion (¥ 2.4 Trillion), the highest level since 2Q08, prior to the Financial Crisis.

HFR also launched www.HedgeFundResearch.cn, HFR’s Chinese-language website, which includes general information on the Global and Asian hedge fund industry, over 100 HFR indices, including Asian & Emerging Markets indices, as well as global strategy indices, such as Equity Hedge, Event Driven (including Activist & Distressed), Macro (including CTA) and Relative Value Arbitrage Indices.

“Increased capital allocations to Asian hedge funds in the second quarter is another data point which underscores the significance of the Asian hedge fund industry to global investors, while the 2Q13 performance validates the strategic significance of hedged long/short exposures through what have become divergent equity markets of Developed and Emerging Asia,” stated Kenneth J. Heinz, President of HFR. “Asian hedge funds have effectively implemented sophisticated hedge fund strategies which reduce excessive return volatility and equity market beta while maintaining exposure to powerful secular growth trends. With various themes developing into 2H13, including continuation of Bank of Japan stimulus measures, convergent economic growth rates in Emerging Asia and systemic risk associated with off balance sheet liabilities of financial institutions, both Asian and global investors are likely to increase allocations to Asian hedge funds and benefit from these tactical performance dynamics.”

Press release

www.hedgefundresearch.com

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: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq

  3. David Tepper says we're 'nowhere near an overheated' stock market[more]

    From Marketwatch.com: Billionaire David Tepper thinks comparing this current stock-market environment with the overheated markets of 1999 is "ridiculous." The hedge-fund manager, who runs Appaloosa Management, told CNBC in a phone interview on Tuesday that the market's record run, notwithstanding la

  4. Opalesque Exclusive: Altegris and Artivest partner on distribution for alternative funds suite[more]

    Bailey McCann, Opalesque New York: California-based investment firm Altegris has partnered with New York-based alternative investments platform Artivest on distribution for $1 billion in alternative funds. The partnership also launches Artivest's capabilities to offer alternative solutions to acc

  5. Investing - Buffett's Berkshire Hathaway will not increase its Oncor offer, Travel-tilting hedge funds are investing in airlines and online travel agencies[more]

    Buffett's Berkshire Hathaway will not increase its Oncor offer From Reuters.com: The energy unit of Warren Buffett's Berkshire Hathaway Inc said on Wednesday it will "stand firm" on its $9 billion offer to acquire 80 percent of Oncor Electric Delivery Company LLC and will not increase it