Asia’s hedge-fund industry, while still small compared with those of North America and Europe, is closer to the peak of $176 billion reached in 2007, according to data provider Eurekahedge Pte. Ltd. Net inflows of $14.4 billion in the nine months ended Sept. 30 brought total assets under management in Asia to $140.8 billion, according to data provider Eurekahedge Pte. Ltd.
Asia’s hedge-fund industry, while still small compared with those of North America and Europe, is closer to the peak of $176 billion reached in 2007 than it has been in the last five years, a reflection of rising confidence in the region’s hedge-fund managers and of economic growth in Asia that remains far stronger than the rest of the world. Japan-focused funds have been the standout performers, returning 21.2% in the first nine months, according to Eurekahedge, as Prime Minister Shinzo Abe has enacted aggressive stimulus measures to pull the economy out of two decades of deflation and stagnant growth. Funds that invest in China returned 11.5% as the economy kept up a fast growth clip, despite some slowing.
Performance elsewhere has been patchy, with India funds returning a loss of 11.2% and South Korea a loss of 1.4%. Overall, the region delivered a 10.1% return in the first nine months, beating Europe’s 5.0% and North America’s 6.3%. Since the financial crisis, Asian hedge funds have outperformed European funds by 13.7%, although they have underperformed North American funds by 11.0%, according to Eurekahedge. Source