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Alternative Market Briefing

One third of Asian hedge funds headquartered in China

Tuesday, August 19, 2014

Komfie Manalo, Opalesque Asia:

China continues to the preferred location of Asian-focused hedge fund firms with approximately one-third of firms headquartered in China. Other popular Asian firm locations include Singapore with 11.4%, followed by Australia and Japan with 5.6 and 4.3%, according to the latest HFR Asian Hedge Fund Industry Report, released by analysis and research HFR.

Asian hedge funds assets surged in the second quarter of this year to $116.7bn, the third consecutive quarterly record for the Asian hedge fund industry. Asian hedge fund capital increased by $2.6bn during Q2, driven largely by performance-based gains as funds topped local Asian equity markets.

Despite the increase in capital to a record level, net capital inflows declined relative to both the prior quarter as well as year-over-year comparable to 2Q13. Outflows in Asian Equity Hedge strategies and Emerging Asian regions offset inflows into Asian Event Driven and Relative Value Arbitrage (RVA) strategies, and brought the overall 2Q14 inflow total for Asian hedge funds to $162m. As reported previously by HFR, total hedge fund capital globally increased to a record $2.8tln through mid-year 2014.

"Following moderate performance in most regional Asian markets through early 2014, Asian hedge fund performance accelerated in recent months with funds in China, India, Korea and Japan producing i......................

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