'12 Asian Launches Hit US$2 Billion

Jul 19 2012 | 11:50am ET

Newly-launched hedge funds in Asia raised US$2 billion in the first half, according to a new report.

The fundraising total topped the second half of last year's by 50%, even though only two more hedge funds, 32, debuted in the last six months than in the earlier period. But each averaged US$63.25 million at launch, compared to US$44 million in the second half of 2011, according to AsiaHedge.

Most of the money went into second-generation hedge funds, such as those launched by Perry Capital veteran Alp Ercil and former FrontPoint Partners trader John Foo. And AsiaHedge said to expect more of the same in the second half, with hedge funds from Credit Suisse's David Curtis, Och-Ziff's Manjor Jain and Sohit Khurana, and JPMorgan Chase's William Lee.

"We anticipate several high-quality launches, aided by better macro clarity post the U.S. elections and a desire on the part of global allocators to correct their structural under-allocation to Asia," AsiaHedge's Aradhna Dayal said. And the influx of high-quality managers "is good news for institutional investors who have found it frustrating in previous years to find enough managers in Asia with the credibility and scale to take in larger tickets of US$50 million to US$100 million."

Multi-strategy funds were the most popular of the new launches, taking in almost half of the total raised. And Hong Kong's status as Asia's hedge fund capital was solidified, with new funds based in the Chinese city accounting for US$1.75 million of the new money. Singapore-based funds raised less than 10% of that total.


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