WEST PALM BEACH, FL (www.hedgeco.net) – Just as new asset inflows are declining elsewhere, the Asian hedge fund managers are seeing accelerating inflows into their hedge fund management portfolios.According to AsiaHedge, the number of new Asian hedge funds excluding Japan increased in June to its all time high. About fifty-five new Asian hedge funds, which came to the market during the firstsix months of 2005, were able to raise a total of over $3.5 billion during that period. Thirteen of those managers said they would focus their investment activities in Asia region excluding Japan.Those thirteen hedge funds manage a combined asset of about $828 million.
In 2005, forty new hedge funds hit the market and those managers raised about $1.7 billion in total investment assets from January to June. According to AsiaHedge, “Traditionally, the bulk of assets raised by new hedge funds in Asia occur in the second half of the year.� AsiaHedge added, “(It) should mean that the sudden splurge in the first half points towards another record for the full year as a whole.”
AsiaHedge said, �Such data is good in light of the fact that other sizable global hedge funds were also launched, while those funds invest a sizable proportion of their assets in Asia, they could not be classified as Asian Hedge funds.� AsiaHedge added, �That while those funds did not meet the classification of Asian hedge funds, they probably boost the investable capital of the new funds by a further $2 billion.”
The new research by AsiaHedge also showed that Hong Kong led the pack with 14 managers, followed by Australia, Japan, and the United States. Such data goes to show that Asian investors were not scared off by the declining hedge fund returns and the losses encountered in the convertible arbitrage portfolios few months ago.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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