Asian Hedge Funds Assets
Asian Hedge Funds Struggling to Raise Money Despite Boom
Asian hedge funds are struggling to raise money despite fundraising in the world's fastest growing region. Some Asian hedge funds are returning money to their investors as assets of Asian hedge funds have dropped 8% since the financial crisis.
Singapore-based Amoeba Capital Partners Pte, run by the former head of Asian investments at Morgan Stanley’s asset- management unit, is returning money to investors in its stock hedge fund, citing “tough” industry conditions. Michael Coleman, co-manager of the $1.3 billion Merchant Commodity Fund, in June shelved plans to raise money for an equity hedge fund.
“The Asian hedge-fund industry, overall, has yet to definitively prove to the global investor community that it has matured past the ability to deliver beta,” or investments whose returns tend to track the market, said Kirby Daley, a Hong Kong- based senior strategist with Newedge Group’s prime brokerage business. “This is seemingly constraining asset flows into the region past a certain point.”
Hedge-fund managers in the region are failing to cash in on the world’s fastest economic growth even as their stock-fund rivals are. Asia’s hedge funds saw $1.2 billion of outflows in the first seven months of the year, Eurekahedge Pte said in its September report. In contrast, the region attracted about $19.8 billion in net inflows into equity funds this year, Cambridge, Massachusetts-based EPFR Global said in an e-mail Oct. 12. Source
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