Investor attitudes

Fri Feb 17, 2012

The institutionalisation of Asian hedge funds

The historical stereotype of investors in the Asia-Pacific is one of overwhelmingly long-only accounts that are predominantly overweight in equities. The general consensus, however, is that at both an institutional and a retail level, investors have become more cautious since the global financial crisis. Take the example of Australia, where the investor community has been famously equity-oriented for decades, and where the equity exposure of the giant local superannuation industry – which has assets of some A$1.4 trillion (US$1.5 trillion) – has been almost exclusively in long-only strategies.

Kim Ivey, president of AIMA Australia, says that a handful of Australian superannuation funds ("superfunds") began investing cautiously in hedge funds as early as 2000. "I know of at least three superfunds that started investing in FRM, Mesirow Financial and others in 2000 and 2001," he says. "I think the superfunds that began to invest in funds of funds relatively...

ISSN: 2151-1845 / CDC10004H

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