Opalesque Industry Update - The latest Preqin research finds that having made gains of 7.54% in 2015, Asia-Pacific-focused hedge funds recorded
losses of 2.02% through the opening quarter of the year, the lowest performance of any region. While the hedge fund
industry as a whole saw returns of -0.43% in the quarter, monthly returns for Asia-Pacific funds were the most volatile
of any region, as Preqin’s benchmark ranged from -4.19% in January to 4.13% in March. Europe-focused funds also
struggled in Q1 2016, recording losses of 1.97%, while North America-focused funds posted -0.64% for the period as a
whole. The proportion of hedge fund launches in Q1 that were based in Asia-Pacific halved from the level seen in Q4, as the region accounted for just 5% of all launches globally. North America-based managers represented 64% of launches in the quarter, with Europe accounting for just over a quarter (27%). Additionally, just 5% of new hedge fund launches were focused on the Asia-Pacific region, down 12 percentage points from Q4 2015. The appetite of Asia-Pacific-based investors for hedge funds has significantly decreased from 36% of fund searches in the final quarter of 2015 to just 11% of fund searches in Q1 2016. Other Key Q1 Hedge Fund Facts:
“The Asia-Pacific region saw activity slow in the first quarter of 2016, recording net losses and seeing a reduction in the number of launches focused and based in the area. While returns for all regions were negative in the first quarter of the year, the volatility of Asia-Pacific-focused funds, coupled with the sharp decrease in launch activity, indicates that fund managers are finding challenges within the region. However, given the strong performance seen in the region over the past four years and the return to form in March, investors and fund managers focusing on the region can be optimistic for a future increase in activity in the future. March’s revival is widespread across different regions and fund managers will be seeking to build on this throughout the rest of 2016.” Amy Bensted – Head of Hedge Fund Products, Preqin |
Industry Updates
Hedge Fund activity in Asia-Pacific region slows in Q1
Wednesday, April 20, 2016
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