Research

2011 Key Trends in Asian Hedge Funds

Introduction

The Asian hedge funds sector witnessed some mixed fortunes in 2011 with managers posting (on average) negative results for most of the year but also experiencing net positive asset flows. As at end-December 2011, the total size of the industry stands at US$124 billion managed by nearly 1300 funds.

The sector has posted remarkable growth over the last 12 years in terms of assets under management (AuM), total number of funds, performance, development of the service provider space and availability of new products and strategies. At the start of 2000, there were less than 150 hedge fund managers who were investing in the region, including those based outside Asia, with a total AuM of less than US$20 billion. Over the next eight years the sector witnessed strong growth AuM reaching their highest point in 2007 at US$176 billion – a growth of more than 600%. The size of the region’s hedge fund industry was hit by the combined effect of redemptions and performance-based losses through the global financial crisis and assets under management fell to US$105 billion in April 2009.

 

 Figure 1: Industry growth since 1999

 Asian hedge funds industry growth since 1999 

After April 2009 the industry rebounded with managers registering excellent performance-based gains and also attracting net positive asset flows. By year end 2010 the size of the industry ...

 

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