Asian Hedge Assets Flat As Performance, Inflows Fall

Aug 1 2008 | 11:41am ET

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.”


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...