Japanese Hedge Funds Seeing Red

Feb 5 2008 | 9:46am ET

Is the sun setting on the Japanese hedge fund industry? Predictions of doom and gloom abound after investors yanked at least US$7.7 billion from Japanese hedge funds last year—and possibly as much as US$20 billion—pushing it further behind its Asian rivals and prompting fund closures and reorganizations.

Japanese hedge funds now manage just US$24 billion, according to Eurekahedge. In addition to redemptions, the industry posted investment losses of more than US$3 billion, making it one of the few regions to post a loss in 2007.

Last year was the second straight year of outflows for Japanese hedge funds.

By contrast, hedge funds in Asia—excluding Japan—continue to boom, raking in US$22.4 billion in new assets, almost as much as is managed in Japan. Those funds also enjoyed a positive investment return in 2007, gaining more than US$12 billion in the markets to reach a total of US$101 billion.

The Japanese bloodletting claimed some high-profile victims: Goldman Sachs has decided to close its GS Strategic Japan Partners hedge fund, Reuters reports, while funds managed by Stratton Street Capital, Whitney & Co. and Sparx Group all posted sizeable losses.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.