New fund assets edge up in 2010 despite a slow second half

Thu Feb 24, 2011

The latest AsiaHedge new funds survey finds that despite a slightly lacklustre second half, the full year of 2010 saw as many as 95 new funds garnering $3.84 billion in assets, though rising barriers to entry meant that most of the capital went to managers with a strong pedigree

A certain degree of optimism returned to the Asian startup scene in 2010, with insitutional capital and conviction returning in the Asia story, and a number of existing hedge fund shops as well as a few former star portfolio managers launching new ventures.

At 95 in all, the total number of new funds launched in 2010 was not significantly higher than the 77 launches seen in 2009. But what is more interesting is that the average launch size shot up significantly to about $40 million in 2010 – a clear reflection of thawing capital arteries as well as the fact that higher operational costs have made smaller launch sizes less viable. Overall, new funds garnered $3.8 billion in 2010, which is a considerable improvement on $2.6 billion in 2009 and $2.97 billion in 2008.

Another interesting factor is that Singapore built market share aggressively through 2010, with the...

ISSN: 2151-1845 / CDC10004H

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