High Attrition Predicted For Asian Hedge Funds

Jan 5 2012 | 1:03pm ET

If the future of the hedge fund industry lies in Asia, it appears the future will have to wait.

The region's hedge fund industry is likely to contract this year following a 2011 characterized by poor performance and fundraising difficulties. This year, those trends will result in significant attrition among Asian hedge funds, 125 of which closed in the first 10 months of last year against only 122 new launches.

"2012 will be the year of major attrition," GFIA's Peter Douglas told Bloomberg News. "People's stamina will increasingly give out; regardless of your commitment and personal wealth, the number of years that you can go pursuing your dream without any kind of compensation is a stretch."

With about 80% of Asian hedge funds below their high water marks, according to Bank of America Merrill Lynch's Ben Williams, and a tough performance environment over the next six months, many hedge funds may be forced to close their doors.

Nor are the multitude of Asian managers helped by investors' increasing preference for larger managers, and the growth of such larger, Western-based managers in the region.


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.