Poor performance in the third quarter drags down regional hedge fund assets, according to the latest data.
Tag : hfr
August saw the sector record its worst monthly stats so far this year, further clouding a weak performance in 2011. But research house HFR sees some cause for optimism.
Fewer launches from Asia puts the region behind the global growth rate.
HFR numbers show the Asian hedge-fund industry has received the largest net inflow of capital in any quarter on record.
Emerging-market hedge funds recorded net outflows in the second quarter, just as they did in the first, says Hedge Fund Research.
The inflows are linked to positive sentiment on China, strong Indian hedge-fund performance, increased fund-launch and corporate-deal activity, and renewed interest in Japanese funds.
But Hedge Fund Research Inc awards that dubious honour to Latin America funds. Either way, says GFIA, Asia-based hedge funds perform better than their Asia-focused peers outside the region.
Two different measures of performance show the first positive returns since May 2008.
As investors fled Asia-focused hedge funds in the third quarter, additional valuation losses caused the industry to shrink by 13%, according to HFR.
And total assets remain flat due to losses from volatile markets.
The volatile first quarter proved damaging for most hedge funds with an Asia-focused strategy, says HFR.
The Chicago-based fund of funds teams up with Hong Kong''s Oria Capital to launch an Asian note.