Where do you base an Asian hedge fund? It is a surprisingly complex and emotive issue. Is it best to base the key investment professionals in Tokyo or Hong Kong? Or can they do the job just as well from London or Seattle?
For the time being the majority of Asian- invested assets are being managed from the UK and the US. However, the pace of growth of Asian-based managers is accelerating.
Part of this process is being driven by investors. They are increasingly comfortable investing with Asian-based managers. They can also see the merits of having Asian managers in the region where they are closer to the information flow and companies they follow.
But even if a manager makes the decision to set up in Asia, that is not the end of the debate. There are plenty of Japanese equity funds based in Singapore, Hong Kong or Australia. In...