Hedge Fund Inflows to Asia to Increase

According to Barclays Plc, inflows to Asia-based hedge fund managers may increase by $8 billion this year. Many hedge fund managers believe the best growth opportunities still exist in Asia. The threat of added regulation in the US and EU may give hedge fund managers in Asia an additional advantage over their western counterparts.

Overall, assets under management in Asia-Focused funds are expected to increase to $71 billion by the end of the year. Only a third of that amount would be managed by hedge funds based in Asian countries.

Most hedge funds in Asia are located in Singapore, Hong Kong, China, and Japan.

Hong-Kong Based Hedge Fund Closes

1-Apac Greater China hedge fund who once managed $55 billion is closing its doors. Dr. Ken Lu confirmed today the decision was made to pull the plug after 16% losses this month and assets diminishing to under $10 million.
Very bearish asian stock market returns have been pounding China focused hedge funds this year with more fund closings than openings this year. This is a sharp reversal from last year when almost twice as many hedge funds were opened as were closed.

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