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 managers.
When the money fails to...