tailieunhanh - Hedges on Hedge Funds Chapter 12

CHAPTER 12 The Dynamic World of Asian Hedge Funds. Most investors in Asian hedge funds appear to be Americans and Europeans who seek to benefit from recent changes, such as a ruling that now allows hedge funds to be sold in Hong Kong and Singapore. | 12 The Dynamic World of Asian Hedge Funds Most investors in Asian hedge funds appear to be Americans and Europeans who seek to benefit from recent changes such as a ruling that now allows hedge funds to be sold in Hong Kong and Singapore. Australia also is increasingly active in the hedge fund arena and represents another opportunity. Although there are signs that Asian investors are increasing their allocations to hedge funds current hedge fund allocations are primarily to those funds focusing on . European markets. Dramatic growth in asset allocation to Asian strategies in the last several years is the result of Asian investors seeking access to absolute return strategies of managers starting funds that focus on investing in the Asian markets and of investors in general taking more interest in the investment opportunities available in Asia. See Table . As global equity markets have faltered and economic uncertainty has increased investors have increasingly realized that hedge funds have a place in a portfolio of investments. Because the financial markets in Asia TABLE Growth of Asian Hedge Fund Assets in 2003 Region Number of New Funds Assets Asia Pacific 100 billion United States 400 24-27 billion 167 168 HEDGES ON HEDGE FUNDS are more inefficient than the . and European markets they arguably offer good opportunities for talented fundamental investors and arbitrageurs. Increased hedge fund education of Asian investors is also a positive for the industry. The main source of demand from within Asia has been Japanese institutional investors. Many of Japan s most powerful institutions including life insurers major banking groups trading houses and semigovernmental lenders have become increasingly receptive to hedge fund investment and in several cases are trying to position themselves as investors distributors and even managers. Japanese institutions have increased allocations to hedge funds primarily to global fund of hedge funds and there is .