Asian Investor, 17 Nov 2008, Jame DiBiasio
As investors fled Asia-focused hedge funds in the third quarter, additional valuation losses caused the industry to shrink by 13%, according to HFR.
nvestors have lost $10 billion from bad performance among Asia-focused hedge funds in the third quarter, prompting them to redeem an additional $3.4 billion from the industry, according to Hedge Fund Research, a Chicago-based consultancy.
This means the industry has shrunk by 13% in the past three months, from $100 billion to $87 billion, HFR calculates. This is worse than the global hedge-fund industry average, which has shrunk by 11% in the same period, to $1.72 trillion.
The biggest losses were in equity hedge strategies. The preponderance of these in the Asian market explains the reason why regional funds have fared worse than their global counterparts. HFR says investors withdrew $2.9 billion from equity hedge, plus another $366 million from event-driven funds and $196 million from relative-value strategies.
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