Wed, Dec 12, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers February 2018

PERSPECTIVES: Investors see increased turnover and shorter life span of new hedge fund managers in Asia

 

Investors see increased turnover and shorter life span of new hedge fund managers in Asia

Asian hedge fund managers have seen tremendous growth particularly last year. However, one notable change in the region is the increased turnover of managers in Asia, said Theodore Qi Shou of Skybound Capital, a global asset manager specialized in alternative investment

Commenting on the issue of the opportunities for Asian managers at the latest Opalesque Hong Kong Roundtable, Qi Shou said it is very easy to track asset managers in Hong Kong because most fund managers or hedge fund-like family offices are required to secure a Type 9 license with the Securities and Futures Commission (SFC).

He told the roundtable, "We estimate that in the past the annual turnover among hedge fund managers that are registered and licensed in Hong Kong would be in the range of 15% to 20% per annum, meaning 15% to 20% of them will drop out and cease to be a licensed entity which pretty much means they are out of business, and usually about the same number of new or emerging managers come into play."

However, in most recent years, Shou noted that plenty of new managers have emerged and "they may come from anywhere that you can imagine."

He added that some of these new managers used to be prop traders, or head of sales or head of marketing at investment banks. There was even a former "head of IT" coming to launch a hedge fund. However, he said that the number of drop-outs remains high

Lifespan of new managers tend to be shorter

According to Shou along with the higher turnover, the lifespan of new managers tends to be slightly shorter now

When in the past, a manager who have had a tough first year or second year would have hung on and hoped to be able to grow out of this, but lately managers wer......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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. Hedge funds pivot back to stocks, raising leverage from 2018 low[more]

    From Bloomberg: The smart money is finally warming up to U.S. equities after turning defensive in the past few months. Hedge funds' gross leverage, a measure of the industry's risk appetite, climbed 2.5 percentage points to 234.5 percent as of Nov. 29 from a one-year low reached 10 days earlier, cli

  2. Brexit: Hedge funds make big bets against post-Brexit UK economy, Hedge funds rent a lifeline to stay afloat in EU post-Brexit, Treasury green-lights sale of new EU funds into UK[more]

    Hedge funds make big bets against post-Brexit UK economy From The Guardian: A pair of hedge funds owned by prominent Brexit supporters have made significant bets against companies exposed to the British consumer including big high street names. Odey Asset Management, part-owned by Cr

  3. Trends: Licking their wounds, fund managers prep for rally in '19, Concerns rising over leveraged loan market[more]

    Licking their wounds, fund managers prep for rally in '19 From Reuters: With bond and equity markets from the United States to emerging markets all on pace to lose money this year, investors have not seen this much red on their screens since 1972, the last time no asset class returned at

  4. New Launches: Swiss boutique launches EM impact bond fund, Jungle Ventures to raise $200m third venture capital fund, CPR AM licences five funds with new climate rating, Sailing Capital seeks $1.5bn for second fund, Liquid multi-strategy alts focus of new Schroder fund, Vivo Capital rakes in $864m, Swiss group launches sustainable European small-cap fund[more]

    Swiss boutique launches EM impact bond fund From City Wire: Swiss impact investmenting boutique BlueOrchard has launched a Ucits-complaint impact bond fund. The Luxembourg-domiciled Emerging Markets SDG Impact Bond fund will allocate to companies in emerging and frontier markets and aims t

  5. Institutional Investors: PennPSERS earmarks $450m for 3 funds, adds new funds to DC lineup, Qatar Investment Authority has accelerated investments in technology, Elon Musk says he would no longer accept Saudi investment, San Francisco City & County Employees slates $192m for alternatives[more]

    PennPSERS earmarks $450m for 3 funds, adds new funds to DC lineup From PIonline.com: Pennsylvania Public School Employees' Retirement System, Harrisburg, allocated $450 million to three investment funds and added 11 new funds to its defined contribution lineup, confirmed Evelyn Williams,