WEST PALM BEACH, FL (HEDGECO.NET) – The first half of 2004 has seen a decline in the number of new hedge fund launches in the Asian region; experts think part of the problem is the unstable stockmarkets, added to an existing problem of lack of experienced hedge fund managers. Many fund managers may have postponed new hedge fund launches, according to a recently released report by AsiaHedge.
According to the new report, only 40 new hedge funds were introduced in Asia during the first half of 2004, while during the second half of 2003, about 90 new hedge funds were launched. New assets raised by Asian hedge funds dropped from US $3.1 billion realized during the second half of 2003, to only US $1.6 billion raised during the first half of 2004.
The new report also showed that in the past 18 months, Hong Kong based hedge fund managers did better than the other Asian hedge funds managers by raising about US $1.3 billion of new start-up assets. Such a performance was made possible by the advanced stage of the Hong Kong hedge fund industry, which offers better hedge fund support functions and services than other countries in the region.
Iain Jenkins, managing editor of HedgeFund Intelligence explains that this year has been hard for hedge funds. He said, �It’s been a pretty rough first half for the global hedge fund industry in terms of investment returns; we�ve seen some of the worst data since the demise of Long Term Capital Management.�
According to the new report, Japan�s hedge fund industry is suffering from lack of new talent, as traditional portfolio managers in Japan are not switching to hedge fund management as in United States or Europe. In Singapore, while more hedge funds hit the market, portfolio sizes remain considerably smaller according to the new report.
Some experts think the global hedge fund industry is growing at an unsustainable rate. The opportunities available in the markets may not be able to support the double-digit gains, which the average hedge fund made during the past few years.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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