Consolidation and negative returns shave Asia-Pacific assets by 8% to $140.6bn in 2011

Thu Mar 22, 2012

A wave of shutdowns, negative performance and net outflows led Asian hedge fund industry assets to decline by some 8% to end-2011 to end the year at $140.62 billion. What is heartening, however, is the growing influence of multi-strategy funds, and the great move East, whereby a whopping 78% of industry assets are now managed from within the region

To say that 2011 was a tough year for Asian hedge funds would be an understatement. Volatile markets got managers on the defensive and ate into performances, which on an average ended the year in negative territory – with the Composite median down by 5.71% and by 8.75% on a mean average basis. There was also a massive wave of closures that swallowed up many Asian funds and the trickle of net inflows that there was tended to go into a limited number of larger-scale existing or new managers. The recovery in the US market also resulted in some outflows for the Asian industry.

Consequently, assets in the Asian hedge fund industry ended the year 2011 down 8% at $140.62 billion, as compared to $152.39 billion at end-2010, according to the latest AsiaHedge asset survey. A look at the mid- and end-2011 numbers also shows that the contraction in...

ISSN: 2151-1845 / CDC10004H

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