China Hedge Funds Assets
China Funds Add Assets Despite Mediocre Performance
China-focused hedge fund performance is not very impressive but the money is still pouring in. Hedge funds focused in the country are still receiving massive amounts of money despite weak performance. Last year, funds focused on China brought in $3.5 billion even though performance was below the global average.
HedgeFund.Net said China funds added $3.5 billion in assets in 2010 to a total $18.68 billion, even as their 6.11% gains were short of the global industry average of 10.55%.
"The country's equity markets have reacted negatively as the Chinese government's concerns about inflation become clear, evidenced by recent increases in interest rates, reduced growth forecasts in its 5-year plan and an increase in reserve requirements in January," it said.
The 23% asset growth at China funds was much faster than the 14% for the industry as a whole.
Still, China funds' asset level hasn't rebounded to the previous peak of $22.84 billion in the third quarter of 2007, after a dramatic plunge to a post-crisis low of below $10 billion. Global hedge fund assets totaled $2.47 trillion at the end of 2010, HFN said.
So far this year, China funds' performance also paled compared with global and Asia-Pacific peers. They recorded a 1.88% decline in the first two months of the year, while global funds gained 1.33%, Japanese funds rose 4.13%, and Australian funds rose 2.15%. Source
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