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Seeking Alpha – During the past week, almost 15 percent of investors have expressed a specific interest in India-focused funds. When compared with the first week of the second quarter, this percentage is almost double. In a recent article in Hedge Funds India (see, “Hedge Fund Managers Cautious: Focus on China and India,” June 22, 2009), Seppo Leskinen, an investment manager stated
I think the shift of the world’s economies has gone to China and India and these BRIC (Brazil, Russia, India and China) economies. They are the new economy superpowers in the economic world.
A study by HedgeFund.net (HFN) seems to support this opinion. HFN found that since the first of the year, India-focused hedge funds have produced average returns of 19.6 percent. The same study also estimated that between late 2005 and September 2008, the total assets allocated to India-focused hedge funds increased from $2.8 billion to almost $14 billion. This increase of close to 500 percent shows that hedge fund investors have been looking for more exposure to India.
West Palm Beach (HedgeCo.net) – The top 10 hedge fund adminstraators reported $1.64 trillion in hedge fund assets under administration (AuA) in the Q4 2008, according to HFN, with Citco Fund Services, State Street Alternative Investment Solutions and Goldman Sachs Administration Services taking the top three positions.
HFN also released early estimates for February hedge fund asset flows which indicate the outflow from the industry continued during the month, but at a much slower rate than prior months. Early estimates show hedge fund assets fell an additional 2.2% in February 2009 to $1.746 trillion compared to a reduction of 7.6% in January 09.
The drop was largely due to net investor redemptions and fund liquidations of $35.9 billion during the month and combined with a reduction due to performance losses of $3.53 billion. Early estimates have the HFN Hedge Fund Aggregate Average -0.61% for February, but this figure will likely go lower as more funds report.
Taking into account internal estimates of where month end performance will likely settle, February 2009 should go down as the 5th highest level of hedge fund outperformance over equity markets in the last twenty years.
The Q4 2008 HFN Administrator Survey contains information on hedge fund and fund of funds assets under administration (AuA) from 60 administrators. Results detail total reported AuA, regional concentration, growth rates and top ten lists for more than 20 criteria.
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West Palm Beach (HedgeCo.Net)- The Managed Funds Association (MFA) and the Coalition of Private Investment Companies (CPIC) called on SEC Chairman Christopher Cox in a letter to not extend the emergency order on short selling beyond the announced expiration date.
"While we recognize that the financial sector is undergoing an extraordinarily difficult period," Richard H. Baker, MFA President and CEO, said, "we believe that these difficulties are the result of poor fundamental conditions and not a mysterious conspiracy or, more to the point, the inadequacy of current rules related to short selling."
"Such action would severely burden short selling activity, which the SEC itself repeatedly has acknowledged plays a vital role in the stability of securities markets." James S. Chanos, CPIC Chairman said, "Restrictions on short sales distort the fundamentals that drive market prices and are, in the long run, counter-productive because they remove liquidity and healthy skepticism from the marketplace."
The current expiration date is 11:59 pm on July 29, 2008.
CPIC is a coalition of private investment companies whose members and associates are diverse in both size and investment strategies managing or advising an aggregate of over $100 billion in assets.
MFA members represent the majority of the largest hedge fund groups in the world who manage a substantial portion of the approximately $2 trillion invested in absolute return strategies. MFA is headquartered in Washington, DC, with an office in New York.
