Last Year's Asian Launches Raised Less

Feb 25 2014 | 12:02pm ET

The growing clamor among investors for Asian hedge funds hasn't trickled down to the horde of new entrants to the industry, according to a new report.

Hedge funds that launched in the region raised just US$3.85 billion, 20% less than the record US$4.74 billion raised by new funds in 2012. What's more, the number of launches last year was 71, more than the 65 in 2012, meaning that a larger number of new funds are sharing a shrinking pot of assets, according to AsiaHedge.

"Much of this slowdown can be attributed to the longer gestation period that new funds in Asia, and indeed across the world, are facing," AsiaHedge's Aradhna Dayal told Reuters.

Just one of last year's launches, Asia Research & Capital Management, garnered more than US$1 billion.

AsiaHedge's survey also shows Hong Kong strengthening its position as Asia's hedge fund capital, with more than half of the assets raised by new hedge funds last year going to firms in that city. Singaporean managers, by contrast, got only US$469 million, Australian managers US$256 million and Japanese managers just US$100 million.


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