Odey Asset Management has shuttered and liquidated its Asia hedge fund, the second time in two years that it has closed a fund dedicated to the region and leaving it with no Asia-only hedge funds.
The firm last month returned the money in its Asia fund to investors, Financial News reports. According to Odey CEO David Stewart, the fund only garnered US$12 million at its peak, not enough to justify its continuation. And he blamed the fund’s failure to drum up more interest on the failure of its Japan fund in mid-2008, after it had shrunk by more than 97% due to redemptions and big investment losses.
The Asia fund was opened to external investors only months before Odey shuttered the Japan fund.
Still, the fund gave things a good go, strongly outperforming the sinking Asian markets during its lifespan. In 2008, the fund lost 14%, while the average hedge fund lost closer to 20% and the MSCI Asia ex-Japan index plummeted 45%. Over the last three years, the fund has returned 8%; the MSCI index just 4%.
When Odey pulled the plug last month, the fund had just three outside investors.
Vijaya Subramanian, who managed the closed Asia fund, left Odey at the end of January.