Keeping up with the (A.W.) Joneses

Sep 6th, 2007 | Filed under: Hedge Fund Industry Trends

Amid carnage at several high-profile US and European hedgefunds in August, it seems that smaller regional players fared much better.  With credit-dependent strategies taking it on the chin last month (the HFRX Macro Index, for example, was off 7.4%), it turns out that Asia’s equity long/short-dominated hedge fund industry is doing just fine.  This Reuters story on Friday made the case that,

“Even though a fund run by Australia’s Basis Capital became the region’s first major victim of the global credit squeeze, the dearth of Asia-Pacific funds investing in credit markets means it should suffer less than global peers…these types of debt-focused funds were the exception, not the rule, in the $150 billion (75 billion pound) Asia-Pacific hedge fund industry.”

You may recall Alpha Magazine’s ranking of the top Asian-based hedge fund managers (see related posting, ranking). The  story accompanying the ranking also noted the dearth of old-fashioned equity long/short managers in Asia.  In fact, 4 of the top 5 largest funds were of the simple equity long/short variety.  (The HFRX Asian regional indexes were actually up several percent in August).

Reuters also notes this phenomenon in the same article:

More…


To continue reading this article please login (at the right) or click here to learn more about accessing our archives.

Related Posts

  1. Once a cure for insomnia, hedge fund operations now keeping everyone awake at night
  2. August Redux? Some hedge fund indices lower and some higher than infamous month from hell
  3. What’s powering the Asian hedge fund roller coaster?
  4. Is Alpha Spelled A-S-I-A?
  5. Dow Jones joins 130/30 index parade


We welcome comments. Please email your comment directly to admin@allaboutalpha.com