Hedge Funds

Long-only absolute return funds gain momentum in Asia

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Asian hedge fund shops are increasingly looking at rolling out long only, absolute return-type funds with a lower risk/return profile and lower fee structures. The move is a way to capitalise on the core strength of hedge fund managers in Asia, which is a long-only investment style, as well as a need to entice back investors and replenish diminishing asset bases at a time when risk aversion is high and few capital allocations are being made.

Shorting opportunities have also come under pressure in Asia with different forms of bans on shorting still continuing in markets such as Australia.