Asian hedge funds, battling to raise assets, are willing to give up their secrecy and provide clients with more control of their investments in a bid to secure institutional tickets reported Reuter
Asian hedge funds, battling to raise assets, are willing to give up their secrecy and provide clients with more control of their investments in a bid to secure institutional tickets reported Reuters this week. The region’s hedge fund industry has long been characterized by large numbers of small ‘boutique’ funds running less than USD50million. However, as more high-profile billion dollar funds like Morgan Tze’s USD2billion Azentus Capital come to market, not mention global funds like Fortress Investment Group opening satellite offices, the ability for small- to medium-sized managers to attract institutional assets is getting ever harder. Institutions with USD50million+ to invest stick to established ‘branded’ funds. But the growth of managed accounts, which promise institutions greater transparency and control of their assets, could be a lifeline for smaller boutiques as they look to break the USD100million barrier.
Monsoon Capital’s founder Gautam Prakash (pictured) was quoted as saying: “As a manager trying to grow a new strategy, you do whatever it takes to get capital. I see the majority of client money into my Asia fund coming through the managed accounts route going ahead.” The firm expects to sign three managed account mandates in the next several weeks which will double the fund’s assets to USD40million. Certain fund managers set benchmarks of USD100million for a managed account but depending on the strategy it is possible for a manager to support one for as little as USD5million. This could well see institutions diversifying into smaller funds to meet their investment objectives.
