Asian hedge fund managers remained in a largely defensive
mode over the summer, given the increasing uncertainty over QE3
and the 'fiscal cliff’ in the US and ongoing
troubles in Europe.
Historically low volatility across the global markets made
it increasingly difficult to generate returns, while virtual
inertia in categories such as event-driven stymied performance
there. Asian managers were hit in general by a double whammy of
global macro headwinds and concerns over China (and hence
continued to lag behind their global counterparts).
August, however, brought in a slight respite with relatively