Morgan Stanley Asian Hedge Funds
Morgan Stanley Considers Funding to Asian Hedge Funds
The New York-based bank is helping negotiate several opportunities for investors to give money to new hedge funds for a share of their fee revenue and deals in which they will provide capital to expand assets across Asia, said Hugh Abdullah, its Hong Kong-based head of capital introductions in the region. In demand are event-driven funds and equity long-short managers who bet on rising and falling stocks, he said.
“True hedge fund talent is a scarcer resource out here,” said Abdullah in an interview yesterday. “People always want to find the next winner.”
Investors added $3.6 billion of capital to Asia-focused hedge funds in the first three months, the largest quarterly inflow they have attracted since Chicago-based Hedge Fund Research Inc. started to track such data. Managers in the region are courting seeders and those who can provide so-called acceleration capital because the $88 billion Asian industry is still hovering at 79 percent of its 2007 size, even after global hedge fund assets hit a record $2.02 trillion by March, according to HFR.
Investors provide seed capital to new hedge funds typically in exchange for a share of their fee revenue and sometimes an equity stake in the business. Acceleration capital helps small managers which have been in operation for a few years to expand assets to a size that could attract institutional capital. Source