WEST PALM BEACH, FL (www.hedgeco.net) – The California Public Employees Retirement System {CalPERS} is gearing up to make its first investments in Asian hedge funds. Such a move is also seen asevidence that hedge funds have been accepted as a suitable asset class for investment purposes by conservatively minded pension fund managers. CalPERS, the largest pension plan in North America, wasone of the first North American pension fund managers to begin investing with hedge fund managers.
In the late 1990�s, CalPERS selected five hedge fund managers to receive investment allocations for its hedge fund portfolios. The chosen managers were Andor Capital Management, Atticus Capital management, Evnine-Vaughan Associates, Liberty Square Asset Management, and Symphony Asset Management. At that time, CalPERS said it would eventually put $1Billion in hedge fund management portfolios.
Asia is currently seeing significant growth in its alternative investment management sector. Hedge fund analysts believe Asia will be the next center stage for hedge fund management obligations, as regulatory oversight jurisdictions in Asia continue to modernize its old and in some cases, non-existent hedge fund laws.
Part of the reason for such views comes from the issue that the markets in Asia are much less researched than their counterparts in Europe and North America. It is also believed that market inefficiency such as those favoring arbitrage plays still largely exist in Asia. CalPERS is the largest retirement pension fund in the North America, overseeing over $185 Billion in pension assets.
By making the decision to invest with Asian hedge funds, CalPERS may be signaling that Asia is the next arena for significant growth in hedge fund management. Larger hedge fund actors are moving into the Asian hedge fund management arena, and hedge fund assets in the region have grown in comparative terms to previous years. The swelling populations in Asia in addition to perceived growth in the Asian economies will continue to boost investment opportunities in the region. Jean-Philippe Cotis, chief economist at the Organization for Economic Cooperation and Development said, “Over the past few years, East Asian economies have provided a strong impulse for world trade.� Cotis explained that, �Asia�s “steadying influence should not be overlooked” in analysis of the global economy.�
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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