Managers enjoy small gains in August, but remain in defensive zone


Asian hedge fund managers remained in a largely defensive mode over the summer, given the increasing uncertainty over QE3 and the ‘fiscal cliff’ in the US and ongoing troubles in Europe.

Historically low volatility across the global markets made it increasingly difficult to generate returns, while virtual inertia in categories such as event-driven stymied performance there. Asian managers were hit in general by a double whammy of global macro headwinds and concerns over China (and hence continued to lag behind their global counterparts).

August, however, brought in a slight respite with relatively better performance for Asian markets, thanks