2011 was a tough year for hedge funds. Irrespective of pedigree or reputation the markets took no prisoners, and Morgan Sze’s Hong Kong-based Azentus Capital – Asia’s highest profile launch last year – was no exception. According to Reuters, citing undisclosed sources, the fund fell 6.8 per cent last year following its launch in April, hit by a sharp drop in Chinese shares. A former head of Goldman’s Principal Strategies group, Sze successfully raised approximately USD1billion for the fund at launch: assets have since grown to USD1.9billion. The multi-strategy fund has a global mandate but focuses on companies with exposure to Asia. It was primarily exposure to China that accounted for losses according to one of the sources; mainly Chinese stocks listed in the US. With the average global hedge fund down nearly 5 per cent in 2011, it was a year for most hedge fund managers to forget.