Asia’s most active seed-fund providers are turning to hedge funds with strategies uncorrelated to major macro trends on the back of underwhelming performance on the part of traditional equity and bond portfolios, according to a report by Financial News.
The result is that fund-raising my be difficult for hedge funds that don’t run strategies capable of exploiting market volatility or are focused on forward-looking themes such as clean energy.
The report cites data from WithIntelligence as revealing that only 24 new hedge funds were launched in Asia in the first half of 2022, raising just $1.8 billion, compared with 44 new launches in the first half of 2021 and 78 for the full year.
“Uncorrelated” strategics were the most popular with allocators according to a November survey carried having been elected b y 31% of respondents and exceeding conventional long-short equity strategies.
