Slowdown in fund shutdowns after 2008 spike

Mon Nov 23, 2009




The trend in fund closures looks to have slowed right down in 2009 following a spike in 2008 as a result of the credit crunch. With 58 funds closed down in 2009 up to the end of October, the on-going closure rate of about 6.4% is much more according to the regional norm of 4% to 6% for the Asia-Pacific hedge fund industry. This compares with the 15.8% level we saw last year when 132 funds closed down.

By strategy, the bulk of fund closures are still taking place in Japan long/short. Twelve have closed so far this year compared with eight Asia ex-Japan portfolios. Nonetheless the closure rate for Japan funds has slowed down too, bearing in mind that 46 Japan invested portfolios closed down in 2008 alone.

By location, the numbers are much more evenly spread with 11...

ISSN: 2151-1845 / CDC10004H

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