Japan-Focused Hedge Funds Ready For Abe-Based Boom

Jun 10 2013 | 10:07am ET

Abenomics may have proven something of a disappointment so far, but the pro-growth and stimulus policies of Japanese Prime Minister Shinzo Abe could still prove a boon to hedge funds focused on the country.

Japan-focused hedge funds could grow by 20% this year, Bloomberg News reports, amounting to an increase of US$3 billion to the US$15.1 billion industry. Japanese hedge funds are up almost 18% this year as Abe's policies have significantly weakened the yen.

"Japan is finally coming back," Eurekahedge's Satoshi Iwanaga told Bloomberg. "The Abenomics euphoria has put a spotlight back on Japan. Investors are after those with high returns, and Japan is where you can find that now."

Japan-focused hedge funds managed US$39 billion in 2006 before a series of scandals, poor performance and the lagging Japanese economy took their toll.

Japanese stocks tumbled last week after Abe introduced his reform package, which market players felt did not go far enough. But Iwanaga said he was not spooked.

“The market simply went up too fast,” he said. “It would have been unnatural to keep going at the same pace.”


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...