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PASLA profile: Asia hedge funds

23 February 2010

Asia hedge funds are back in business only to discover that the barriers to entry are now much higher

Read more: PASLA Asia hedge funds

Last year’s performance figures have put to rest any doubts over the future of the Asian hedge fund sector. After the trauma of 2008, confidence in the hedge fund sector had already returned by mid-2009. The industry had grown quickly that year, after falling by about 30% since the first half of 2008 due to client withdrawals. Such was the progress that Peter Douglas, principal of GFIA, a Singapore-based hedge fund adviser, predicted Asian hedge funds would attract a “wave” of new money that could more than double the industry’s assets from its peak of $250 billion.

The confidence was well placed. For 2009, Asian start-up hedge funds posted an average return of 22%, putting them ahead of their global peers and making them an increasingly attractive investment proposition for 2010 and beyond. Data from Eurekahedge Hedge Fund Index shows global hedge fund assets for last year growing...


 

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