Only multi-strategy and macro funds weathered the storm of
redemptions that occurred in the second half of 2008 - wiping
30% off regional AUM. But many had predicted worse
The good news is that it is not as bad as many had expected.
The bad news is, it's still bad. The Asia-Pacific hedge fund
industry's total assets under management dropped by 36% in 2008
from $192 billion to $122.4 billion. This is better than the
50% or thereabouts drop that many had been expecting. But in
reality, the fact that we are back to 2005 rather than 2004 is
cold comfort for what the industry has been put through since
the beginning of September 2008.
The wave of redemptions that occurred in the final months of
2008, can be witnessed by the industry's 30% assets drop in the
second half. This followed on from the near 9% decline in