Prime Broker: Up To 15 $1B Hedge Fund In '11, Five In Asia

Jun 1 2011 | 4:45am ET

In what could prove a big year for billion-dollar hedge fund startups, Asian funds may play an historically big role, a Deutsche Bank prime brokerage executive predicts.

Fifteen new funds could garner at least US$1 billion within two months of launch in 2011, Barry Bausano, co-head of global prime finance, told Bloomberg News. And as many as five of those funds could be in Asia, where one billion-dollar fund—Azentus Capital—has already debuted.

"If you are looking at making a long-term systematic alternative investment to Asia, the limited availability of products with scale is pretty striking," Bausano said. "When you have high-quality, experienced investment professionals of this caliber, they're going to attract significant assets."

And not just at inception: Bausano predicts that "we're going to see some very sophisticated, globally competitive Asia-based hedge fund complexes running capital in the US$5 billion range with the next several years." Currently, there are no funds of that size in the region.

"It reflects the macro-economic situation that has developed globally," Bausano said, in which hedge funds play an increasingly large role. Demand from pensions and other institutional investors will likely push global hedge fund assets into the US$3 trillion range by the end of 2013, he predicted.

"If your asset-liability mismatch is growing because of demographics, you need to ensure that part of your portfolio incorporates higher-yielding assets, like hedge funds, to close the gap," Bausano explained.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.