The 80s and 90s: the early days
Although it has never been the biggest hedge fund centre in the Asia-Pacific in terms of assets, Hong Kong lies at the heart of the industrys development within the region. A significant factor is Hong Kongs longstanding role as the centre for investment banking in the region. This means that all prime brokerage operations have historically been headquartered in Hong Kong.
While it may not be Asia-Pacifics leader in overall assets, Hong Kong has played host to the largest number of hedge funds in comparison to its peers in the region. It also can lay claim to being the home of the first hedge funds to be established in Asia.
The anecdotal evidence points to Hong Kong-headquartered Sofaer Capital, headed up by Michael Sofaer, as Asias first single hedge fund operation. The firm was set...