Friday, November 16, 2012

Reuters: Asia's hedge funds wither

A good read on the sad state of Asia's Hedge Fund Industry
- Asia's roughly 1000 hedge funds manage $144B, a 30% drop from 2007
- The proportion of Asia hedge funds with AUM under $20M is 42% up from 29% in 2007
- 86% of Asian hedge funds manage less than $200M, considered the threshold to attract institutional investors
- $800M has flowed out of Asia hedge funds this year, starving the sector of capital, and at least 73 funds have shut down
- Even funds with good performance have had problem attracting capital because their small size prevents institutions from investing, given that these institutions typically have large minimum ticket sizes.

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