Aradhna Dayal, editor, AsiaHedge
Following a prolonged period of feeble growth, the Asian hedge
fund industry saw a sustained recovery in 2010. Asian funds
benefited from both performance as well as reasonably strong
capital inflows to the region, finishing the year at $152
billion in total assets. This reflected a 15% growth over 2009,
and while industry assets are still far off the 2007 highs of
$190 billion, a roadmap to recovery firmly was put into place.
Several factors led to this asset acceleration as 2010
progressed: the clouds of worsening sovereign debt crisis in
Europe cleared and the overall macro climate improved; equity
markets headed north; and a significant degree of conviction
came back in the Asian growth and sustainable recovery story.
Global allocators, who had been sitting on the sidelines or had
been engaging in...