In terms of the reduction in assets, 2008 will
probably rank as the Hong Kong hedge fund industrys annus
horribilis. Yet, despite the difficulties of last year, the
situation could get worse in 2009 before it
Hong Kongs fund closure rate picked up dramatically in
2008 as the credit crunch began to bite. Twenty-seven funds
closed down, during the year, out of 123 for the industry as a
whole. This was a marked increase on 2007 when there
were only eight closures and represents by far the
largest number of closures within the Asia-Pacific region as a
whole. Australia came closest in 2008, with 17 closures.
Outside the region, the UK matched Hong Kong with 27.
It is the managers who have started up more recently,
since 2004, who have been worst affected by the credit
crunch, says Paul Smith of Triple A...