Reuters- Investors pulled $7.7 billion (3.9 billion pounds) out of laggard Japanese hedge funds last year, more than a fifth of their investments, prompting a shake-up of the industry and draining the faltering economy of prized foreign capital.
The Japanese hedge fund industry has been the pariah of the asset class after two years of losses, and has shrunk to $24 billion. By contrast, funds in China and India have been raking in investors’ cash and enjoying strong returns, helped by booming economies and soaring stock markets.
Some Japanese hedge funds are responding by closing shop, adopting a pan-Asian strategy, or cutting management fees in a last ditch attempt to stem the flow of capital.
