Asian strategies, like most hedge fund strategies, had a tough time last year – as a result of fears that contagion from Greece would threaten the euro, governments tackling their debt problems, natural disasters and to a lesser extent the Arab Spring.
Equities in Asia were sold off significantly as they are perceived to be high beta plays, according to Mark Martyrossian (pictured), fund manager of the Tiburon Taipan fund, which has a long/short strategy focusing on the Asian region.
Long term refinancing operations (LTRO), however, has also poured oil on troubled waters in 2012, he adds. “There was a lot of pessimism in markets in the second half of last year because of the parlous state of the Eurozone,” Martyrossian says. “As a result of euro inspired fears, stocks in Asia – perceived to be a high beta plays – were sold off significantly.”
However, as the effects of LTRO started...