Commentators this month noted on the plight of the Asia-focused
emerging managers who cannot raise capital, on the new burdensome
technological requirements that new hedge funds have to face, and on the
benefits of being small and nimble.
Asia hedge funds shutting down
Asia-focused hedge funds that launched after the 2008 credit crisis are
shutting down as a shrinking pool of key investors makes it harder for them
to raise capital, said Bloomberg in early March, citing Isometric Investment
Advisors and Black's Link Capital which decided to close shop after heavy
"All the smaller funds of funds who used to help and family wealth who
used to help early managers grow are just not there," said Richard
Johnston, Hong Kong-based Asia head of Albourne Partners Ltd., a
consulting firm, told Bloomberg. "The gap between seed capital and
getting to a good meaningful sustainable size of $500 million plus is a hard
gap to plug."
Sadly, Hong Kong-based Triple A recently decided to discontinue its
seeding activity due to a lack of investor appetite.
Learn more about Asian start-ups from our last issue of New Managers
New technological requirements
New hedge funds, whether or not they manage to get seeding capital from
the investment banks which are now venturing into this area, beware; new
technological requirements and the post-2008 investment landscape mean
the barriers to success are higher than ever, warned ......................
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This article was published in Opalesque's New Managers
a top-down monthly analysis, news and research publication on the global emerging manager space.