The February 2010 Eurekahedge Report contains detailed analyses and exclusive insights into the state of the hedge fund industry in recent months up to January through a comprehensive qualitative and quantitative presentation of the industry’s asset flows and performance, with a special feature on key trends in Asian hedge funds.
Eurekahedge is pleased to announce the details of this year’s Asian Hedge Fund Awards 2010, with 14 awards to be presented at a prestigious black-tie gala dinner on 20 May 2010 in Singapore.
The year started off with net positive asset flows of US$0.1 billion; however, the total assets of the industry witnessed a decline due to performance-based losses of US$3 billion, bringing the size of the industry to just under US$1.48 trillion.
After growing at an exponential pace during the first eight years of the last decade, the Asian hedge fund industry witnessed heavy redemptions coupled with significant losses in 2008 and early 2009, bringing its size down from a peak of US$176 billion as at end-2007 to US$105 billion in April 2009. Since then, the sector has undergone a remarkable turnaround in the last five months of 2009 – the Eurekahedge Asia ex-Japan Hedge Fund Index was up 37% in 2009.
The overriding impression of the hedge fund industry right now is one of guarded optimism and that feeling seems to have broadly filtered down to the administration community.
The outlook on the hedge fund industry may have significantly changed over the course of 2009, but 2010 may not be without headaches and this means more vigilance over the possible effects of redomiciliation and regulation.
Part of the problem for hedge fund managers moving into the retail space is that of managing liquidity. Daily dealing quickly became a sector norm and is highly valued by retail investors.
The growth investment approach is likely to continue to curry favour across the Asia-Pacific region, with deal values steadily climbing as investors buy into the economic growth miracle which the region can still lay claim to.
The private equity markets in emerging economies are following a similar path as those in the West. But experts believe that the danger of overleveraging is still far off as more controlling stakes are transacted.
Fawaz Elmalki & Dennis Ryan, Conyers Dill & Pearman (Dubai)
The Cayman Islands has developed a reputation as a jurisdiction of choice for Islamic finance structures, but the rights held by the investors in the event of default under such structures are largely untested.
While some might dismiss the growth in interest in sustainable investing as greenwashing, others point to the involvement of formerly mainstream investors.
