Asian-focused hedge fund assets were flat in the second quarter, as performance suffered and inflows fell by half.

Asian hedge funds managed $100.5 billion at the end of the second quarter, a paltry 0.25% increase compared to the first quarter, according to Hedge Fund Research. Performance losses totaled nearly $320 million, as Asia ex-Japan funds fell 2.2% on the quarter (down 13.8% year-to-date) and Japan-focused funds gained 4.8% (down 7.1% YTD).

Those declines were offset by a $530 million inflow, a positive note were it not for the fact that Asian hedge funds took in about $1 billion in new money in the first quarter.

“Compared to the rest of the hedge fund landscape, the Asian hedge fund industry has a much higher percentage of equity hedge strategies and a lower percentage of macro strategies, the latter of which have posted strong gains through the volatility of 2008,” Kenneth Heinz, HFR president, said. “This disparity in strategy composition, which had a positive influence on results for Asian hedge funds for the five-year period ending in 2007, has adversely impacted Asian hedge fund industry performance thus far for 2008.”