Lack of financial job opportunities said to plug potential hedge fund brain drain for now

Mar 1st, 2009 | Filed under: Editor's Pick, Today's Post | By:
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Given the particularly strong headwinds faced by hedge funds in Hong Kong and Singapore recently, their managers may now be considering a move back into corporate life.  The only problem is that things aren’t much better there.

During our conversations last week with Hong Kong hedge fund industry participants, it became apparent that the industry may benefit from an unlikely source: the general melt-down in the financial services sector. Just as laid-off financial services workers might decide to launch their own hedge fund in response to a dearth of job opportunities – so too might many hedge fund managers stay in the game a little longer. With job opportunities so few and far between, we are told that many small hedge fund managers in Hong Kong might just stick it out – even if they are (temporarily, it is hoped) running at a a loss.

The result is that for now at least, this has staved off a possible hedge fund brain drain.

Cities duel as ship takes on water

After an interesting week in Hong Kong, we have now made our way down to its arch rival in the regional battle for asset management supremacy: Singapore.

Although it is thought to have no more than an eighth of the assets under management of Hong Kong (in all asset classes), Singapore has been wooing asset managers aggressively in recent years – particularly hedge funds.

Last week, the city-state stepped up its game by creating new tax incentives for asset managers.  As Asian Investor reports: More…

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