Asia-Focused Hedge Funds Increasing Their Assets

In the first half of 2012, Asia-focused hedge funds have increased the value of the assets they manage to $144 billion. While the industry in Singapore and Japan shrank during this time, a few large start-ups in Hong Kong helped to fuel the gain.

By the end of June, as compared to the beginning of the year, assets rose 2.5% ($3.5 billion), as shown by AsiaHedge.

As Aradhna Dayal, head of Asia for HedgeFund Intelligence in Hong Kong said, “The modest growth comes from a combination of inflows into some of the bigger launches of the past two years and existing managers as well as from a lack of significant redemptions from investors, who are holding their fire despite some lacklustre returns – at least for now.”

Start-ups in Hong Kong such as Asia Research & Capital Management and Tybourne Capital Management are examples of those that have raised millions of dollars during the first half of the year. Many hedge funds like Seth Fischer Oasis Management are benefiting from this trend as well. The overall assets held by hedge funds in Hong Kong have been boosted by $6.5 billion to $47.1 billion, as reported by AsiaHedge.

Research has shown that approximately 78% of the Asia-Pacific hedge fund industry assets are managed at the moment directly in Asia, which is a major change from the past when most were managed out of the US or England.