The sun may be rising on hedge funds in the Land of the Rising Sun, according to hedge fund seeder Asia Alternative Asset Partners.
Investors have steered away from Japanese hedge funds for several years. Some are still wary of funds in the country, one of the hardest hit by the financial crisis, acknowledges Roger Pyrke, deputy CEO of Triple-A.
“While some investors don’t want to touch Japan after past disappointments, we’ve had a lot more investors saying this is the year of Japan,” Pyrke told the Reuters Private Equity and Hedge Funds Summit. “Many institutions are massively underweight Japan and think its time to get up to neutral weighting on the country.”
Triple-A certainly thinks the small inflows Japanese hedge funds have seen this year are only a taste of things to come. The firm has signed a marketing and distribution deal with Sparx Asset Management, the Tokyo-based firm that is Asia’s largest hedge fund manager, to sell its products outside of Japan.
“It’s a good time for us to be making deals,” Pyrke said. “The terms are much better than they were two years ago.”