Fortress Investment, the hedge fund investment firm, is looking to rebuild operations in Asia through the establishment of a new Singapore office, according to a report by Reuters.

Unnamed sources told the news service that the Singapore office will start small and slowly build up, focusing on investments. The source had declined to provide more information as talks were confidential.

Robust performance by Asian hedge funds is encouraging investment firms to push back into the market. Asian funds, on average, rose by 4.08 per cent in April from the previous month, taking returns in the three months to the end of April to 4.16 per cent (Asian funds lost money in February and January).

Fortress, which is based in New York, had closed down its business in Hong Kong in 2009 and consequently downsized is Tokyo operations after being hit by the global financial crisis. The company and other hedge fund businesses have been starting to rebuild themselves in the region, given its vast growth potential, lighter regulation than in certain other jurisidictions, and largely untapped wealth.

"The main driver for all hedge funds is the opportunity set, and Asia continues to present rich, varied, and constantly developing opportunities,"Peter Douglas, the principal of hedge fund consultant GFIA, was quoted as having said.