The first half of 2010 illustrated a clear problem in Asia: start-up numbers were healthy – 70 in all – but the assets raised amounted to little more than USD1bi
The first half of 2010 illustrated a clear problem in Asia: start-up numbers were healthy – 70 in all – but the assets raised amounted to little more than USD1billion. Further evidence, then, that Asian hedge funds tended to be small, albeit nimble, vehicles. Fast forward twelve months, however, and the situation is altogether more update. According to an AsiaHedge New Funds Survey, the first six months of 2011 saw 24 new hedge funds launched in Asia with a combined USD2.86billion in new assets: nearly triple that of last year. This has certainly been helped by the fact that Hong Kong has seen its “Billion Dollar Club” grow. Morgan Sze’s Azentus Capital launched in April with approximately USD1billion and Principia Capital Advisors are also expected to launch soon with around USD750million. Forget quantity, the quality of Asia’s start-up funds is rapidly improving.
AsiaHedge said in its survey that the average new hedge fund size climbed from USD40million in the first half of last year to USD119million in 2011, with multi-strategy funds attracting the most assets: some USD1.9billion. AsiaHedge editor, Aradhna Dayal, said that whilst the Asian new fund landscape continues to be “reinvigorated”, barriers to entry are the highest ever, meaning that only highly proven managers are able to come to market. “These managers have to display a combination of solid pedigree, experience in managing a sizable chunk of assets and institutionalized platforms,” said Dayal.
