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

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note