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From Komfie Manalo, Opalesque Asia:

Singapore-based consulting firm GFIA released a report this week entitled: "Asia Hedge Funds Note" which forecasted 2009 to be the year of new startup for hedge funds in Asia. GFIA said there will be many small start-ups this year as many high-quality professionals are looking for new opportunities because of the dwindling job availability in the financial sector.

It added that operating cost to start a new hedge fund during a recession is low and the return opportunities look extraordinary. The report estimates that at least 80% of established managers fell below their high watermark in 2008. This means a number of qualified and experienced hedge fund professionals will not have bonuses and many of them will try to launch their own businesses and funds.

Event-driven and Asian macro strategies offer pockets of growth The Asian capital markets are beginning to create opportunities for event-driven managers and GFIA said it expects a strong pipeline of event-driven strategy for 2009. At least two net short equity funds were established in 2006, with reported performances of +26.75% and +38.26 for 2008. There were seven long only absolute launches in 2007 and only one in 2008 because of the economic slowdown. The report said the trend will be reversed this year.

In recent years, there had been an increase in the number of managers with low or minimal correlation ......................

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