One-Fifth Of Asian Hedge Funds Close Since ‘07

Apr 28 2009 | 2:03am ET

Carnage reigned in the Asian hedge fund industry last year, with almost one in five not surviving the 15 months through March, according to a new report.

AsiaHedge magazine says that 129 Asia-Pacific hedge funds closed in 2008, with another 17 going under in the first quarter. The figure for last year is more than double the number of hedge fund closures seen in 2007.

Hong Kong suffered the worst per-capita losses, with 27 funds going under last year. Japan was hit almost as hard, losing 32 long/short equity funds alone last year, with another five succumbing in the early going of 2009.

Like their counterparts in the rest of the hedge fund industry, Asia’s attrition rate had more to do with investor redemptions than with poor performance, although there was certainly plenty of the latter to go around: The average Asia-focused hedge fund lost 21% last year, according to Eureakahedge, which estimates that 80% of the region’s hedge funds finished the year below their high-water marks.


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