Asian Hedge Funds See Strong Year Ahead - Survey

Vanessa Doctor

27 February 2011

The number of new fund launches in Asia went up 48 per cent in 2010, reflecting a renewed interest in investments in the aftermath of the global financial crisis, the latest AsiaHedge New Funds Survey shows.

"Despite a slightly lackluster second half, new Asian hedge fund launches continued to see a sustained interest, though rising barriers to entry meant that most of the capital went to either second-generation managers with a strong pedigree or new offerings from established hedge fund shops," Aradhna Dayal, editor of AsiaHedge in Hong Kong, said in a statement.

In 2009, 78 Asian fund launches were recorded, generating a total of $2.6 billion. The 2010 numbers show 95 new launches, totalling $3.84 billion. According to the study, a good chunk of the increase may be attributed to the emerging high net worth population, which had found serious investment potential in new hedge funds.

Singapore, for one, saw the launch of 15 new funds with $673 million, while Hong Kong, still at the top spot, saw 57 new launches that attracted $2.4 billion. Strategy-wise, China took the lead, attracting $817 million, or 21 per cent of the total from new funds. Japan-focused funds attracted $317 million.

AsiaHedge says that with new players emerging, more is to expected out of 2011. The average new fund size for 2010 is $40 million.