Reuters – A rough year for Asian hedge funds in 2011 exposed the long-only bias of many managers’ portfolios, leaving the industry fighting a tough battle to retain clients as assets shrink and fund closures accelerate.
The setback puts at risk the industry’s slow recovery since 2008 and highlights the need for the survivors to reinvent themselves in Asia, where lower market turnover makes some of the trading strategies used by hedge funds in the United States and Europe harder to replicate.
