Investors Retreat From Asian Hedge Funds

Nov 14 2008 | 11:52am ET

Assets invested in hedge funds focusing on Asia fell sharply in the third quarter of 2008, as a combination of performance-based losses and investor withdrawals affected funds across all Asian regions and strategies.

According to data released today by Hedge Fund Research, investors withdrew more than $3.4 billion, resulting in a 13% decline in the size of the Asian hedge fund industry, which fell from $100 billion to $87 billion in total assets.

Equity hedge funds saw the largest outflows in the quarter, with investors withdrawing $2.9 billion. Investors also pulled $366 million from event-driven and $196 million from relative-value strategies.

The percentage decline in Asia-focused assets slightly exceeded those experienced by the global hedge fund industry for the quarter, which saw assets under management fall by 11% from $1.93 trillion to $1.72 trillion.

The total number of hedge funds investing in Asia also fell slightly, from 1,078 in the second quarter to 1,065 at the end of the third quarter.

“Losses in the third quarter of 2008 represent an incredible contrast to the third quarter of 2007, in which hedge funds investing in Emerging Asia gained 8.7%,” said Kenneth Heinz, president of HFR.

“The combination of a slowing global economy and ongoing financial crises presented challenges this past quarter; however, into 2009, Asian hedge funds will be responding to increased government economic stimulus and corporate acquisitions, which are likely to have a broad impact on liquidity and structure of financial markets.”


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.