WEST PALM BEACH, FL (HEDGECO.NET) – Japan is the strongest and largest hedge fund market in Asia, according to market analysts. Such strength offers some attractive hedge fund investmentopportunities in Asia, with the resumption of growth in the Japanese economy; the stock market has seen some strong price increases in the equity instruments.
According to J.P. Morgan�s head of alternative investments, Joel Katzman, �There’s tremendous change in that market right now.� Mr. Katzman made such statements during a recent media briefing. He added, �Structurally the depth of capital markets allows for great variety of shorting opportunities and derivatives� as well as other investment strategies, Katzman said.
After about a decade of economic stagnation in the Japanese economy, growth indicators have become positive. However many economists and market analysts still maintain a wait and see attitude presently. Such a scenario, according to Mr. Katzman has enabled hedge fund managers and other investors to make bets in the equity markets through going long or short depending on their analysis of the Japanese market conditions.
There is also another factor contributing to these new trends. According to Katzman, the Japanese government has pretty much stayed on the sidelines, allowing market forces to dictate the direction of the economic pendulum. Historically, the government has helped failing companies stay afloat, now there seems to be some king of reluctance from the government to pursue some of these past policies. According to Katzman, such change of attitude from the government allows hedge fund managers and other investment actors to stake out their positions over market direction.
Of the total of about US $21 billion managed by Asian hedge fund companies, Japan controls nearly one half of such assets or about US $9 billion, according to published reports. Hong Kong, Singapore, Taiwan and South Korea are beginning to see growth within its alternative investment sector, as a consequence of their government�s modernization efforts by allowing the marketing of hedge fund instruments to retail investors.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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