Asia hedge fund launches fell to the lowest level seen in 14 years last year, with just 62 new funds making their debut. China-focused funds accounted for less than 25% of that total, with just 15 of the newcomers focused on the world’s second biggest economy, according to a report by Reuters.
The reports cites data from Preqin as revealing that liquidations also outpaced launches in 2023 with a total of 74 funds shutting up shop, while nearly half of those were China-focused funds.
As China interest wanes, other sectors are on the up, with market participants reporting increased demand for Japan and pan-Asia funds, as well as multi-manager funds, of which, at least three are expected to launch this year, according to the report.
As Bloomberg reported previously, one of those will be launched by Arrowpoint Investment Partners, run by Jonathan Xiong, the former Asia co-CEO at Millennium Management, with the firm having already raised around $1bn from investors, according to Bloomberg’s sources.
