Asian hedge fund industry contracts 5% in 1H 2011 to total assets of US$145bn

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  • Recovery stalls as industry assets shrink 5% in 1H2011 to US$145 billion, triggering further consolidation fears
  • Assets slip due to combination of slightly negative average performance in the first half – as well as a drop in new capital inflows into Asian funds
  • However, redemption levels were  muted, reflecting a maturing capital base
  • Asset migration to Asia Pacific accelerates: Managers based within the region now run a record 76% or US$109 billion of total Asia-Pacific hedge fund assets
  • Hong Kong fortifies its position as the largest management centre 
  • Investors move more assets into diversified pan-Asia (ex Japan) funds, making that the