• New funds raise 50% more assets than in second
half of 2011
• Average launch size in Asia now up to more than $63
• Multi-strategy funds dominate while Asia ex Japan
funds make an impact too
• Hong Kong still the top centre with 20 recorded new
launches, Singapore loses market share
Hong Kong, July 20, 2012 - The latest
AsiaHedge New Funds Survey shows a sustained interest in
Asian hedge fund start-ups, with 32 new funds harvesting as
much as $2.02 billion in assets in the first half of 2012.
This is 50% higher than the $1.34 billion raised by 30 new
funds in the second half of 2011, although slightly lower than
the $3.09 billion raised in 1H2011 – a figure that had
been boosted by the mega-launch of Azentus, one of the biggest
new funds in the world since the financial crisis.
"These are fairly healthy numbers given the highly
challenging macro climate and investor consolidation we have
seen this year, and largely reflect the world-class managerial
talent launching in Asia now," says Aradhna Dayal, head of Asia
for HedgeFund Intelligence in Hong Kong. "US allocators were
probably the largest contributor to the start-up capital this
year, though we are seeing a new breed of Asian family offices
and high-net-worth individuals emerge as silent but serious
backers of several new smaller hedge funds."
Most of the inflows into new hedge funds flew into a select
few names in Asia, including second-generation managers with a
solid pedigree, operational platforms and extensive teams.
Average launch size grew to $63.25 million (as compared to
$44 million recorded in second half of 2011) reflecting this
flight to quality. "The rising barriers to entry has
ensured that only high-quality and scalable strategies are
coming to the market, which is good news for institutional
investors who have found it frustrating in previous years to
find enough managers in Asia with the credibility and scale to
take in larger tickets of $50-100 million," says Dayal.
Hong Kong consolidated its position as the location of
choice for start-ups in Asia, with new funds raising $1.75
billion or well over 80% of total assets raised in 1H2012.
Singapore lost ground slightly, with relatively few launches in
the first half, making up for $170 million.
Strategy wise, Multi-strategy funds were most in demand,
accounting for $944 million or 46% of all new fund assets
raised in 1H2012. Asia ex Japan funds followed at over $201
million, Japan-focused funds came back to life at $170 million,
and China funds garnered about $50 million. Event-driven,
arbitrage and macro strategies, which saw a significant
interest last year, saw relatively few launches in 1H2012.
Looking forward, the second half of 2012 seems more
promising for the Asian start-up scene. "We anticipate
several high-quality launches, aided by better macro clarity
post the US elections and a desire on the part of global
allocators to correct their structural under-allocation to
Asia," notes Dayal.
To read the full report in the July/August 2012
edition of AsiaHedge, please contact Shaun Rajiah on
+44 207 779 8367
For more information, please contact:
Walek & Associates (Hong Kong)
Telephone: +852 2273 5102 / Mobile: + 852 6112 7553
Telephone: + 852 2551 2444 / +852 9231 3350