Reuters – The number of Asian hedge funds could increase by 10 percent this year as more unemployed bankers and traders launch new funds and the cost of doing business slumps, an industry expert said on Monday.

"It’s much better to be a small hedge fund manager than an unemployed investment banker," Peter Douglas, founder of hedge fund consultancy GFIA told the Reuters Private Equity and Hedge Funds Summit in Singapore.

"We are beginning to see quite a strong wave of managers’ formation, which is entirely consistent with what we saw after the Asian crisis."

He said these bankers could add to around 700 hedge funds already based in Asia, as battered global banks shed staff who have strong relationships with potential investors, cash from bonuses, and friends to start off small funds.

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