Think of the least likely hedge fund profile to appeal to
the seasoned investor and you think of a long-only Asian
manager with no backer and limited resources. That at least is
what the Asian sceptics would have you believe. In fact,
although raising money for an Asian start-up is difficult, it
is not impossible.
The secret is recognising that it takes a little longer to
reach critical mass in Asia than it does in Europe or the US.
The chances are that an Asian start-up - whether it has
institutional backing or not - will struggle to raise money in
the early stages.
Most of the successful managers in the region struggled at
first. Boyer Allan started with $4 million in November 1998
before surging over $600 million a year later. The pattern has
been repeated to a lesser extent by the recent crop of
When the money fails to...