Hedge Fund Reader : Asia allures hedge funds

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October 16, 2005

Asia allures hedge funds

Emerging markets like Asia is once again becoming a top investment destination for hedge funds. Asian hedge fund industry is estimated to be an $85 billion industry. In the first nine months of 2005 alone, there are 60 hedge funds set up, mostly in Hong Kong, which is four times of that set up in 2004 which was 15 funds, and double from that number in 2003. Asia has done quite well this year, Morgan Stanley Capital International’s Asia Pacific Index is up 8.3 per cent this year, compared to the 2.8 per cent drop of the US benchmark Standard & Poor’s 500 Index and the 14.2 per cent advance of Europe’s Dow Jones Stoxx 600 Index. Asian tigers seem to have regained their stronghold, its hedge fund industry now account for 6.5 per cent of the world’s total, while its equity markets make up for around 15 per cent of the global market value. Business Times Reports:

“Asian markets are the fastest growing in the world. The economies are the most robust and the need for capital is great,” said Donald Sussman, founder of Paloma Partners Management Co, a Greenwich, Connecticut-based hedge fund with US$3.5 billion of assets and a trading team in Hong Kong.

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October 16, 2005 in Emerging Markets, Strategy | Permalink