Asian Hedge Funds Growth To Continue This Year

by Phillip Morton, Investors Offshore.com

05 March 2004

After several years of strong growth, 2004 seems set to be another strong year for hedge funds in Asia.

According to hedge fund information service Eurekahedge, around 100 funds orientated towards the Asian markets are likely to be launched this year, up from the 86 created in 2003, which includes both funds based in Asia itself, and others based outside the region with a heavy Asian emphasis.

These figures are part of a larger trend that has seen the industry in the region grow from 162 funds managing US$14 billion at the outset of 2002 to 360 funds managing US$33 billion by the start of 2004.

By the end of this year, Eurekahedge anticipates that the funds under management will have grown to US$43 billion due to a combination of capital flows and performance.

The trend mirrors that of the global hedge fund market which experienced record inflows during 2003. Recent performance figures by Tass, the research unit of Tremont Capital Markets, found that investors ploughed $26.8 billion into hedge funds in the fourth quarter of 2003, capping a year which saw a total of $72.2 billion flowing into the alternative fund sector.

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