Hedge Funds To Expand In Asia

by Carla Johnson, Investors Offshore.com

21 March 2005

Arthur Samberg, head of US-based hedge fund Pequot Capital told the GAIMAsia conference in Hong Kong this week: "The action is here in Asia, and we're going to get involved."

Samberg announced that Pequot will shortly be launching an Asian distressed debt fund. "The distressed product is the best approach for us to play Asia at the moment. This is the area where inefficiencies are most manifest," he said. Pequot says that its diversified equities fund has about one third of its investments in the Asia-Pacific region.

Other hedge fund leaders supported Samberg's message. Paul Calello, Chairman and CEO of CSFB Asia Pacific predicted an explosion of hedge fund activity in the region. "Asia dedicated funds currently make up 5% of global hedge fund assets, and stand at $52 billion. This number will double or triple in the next three years," he told the conference. "Inefficiencies within Asia's markets and the liberalization of the financial markets are creating opportunities for hedge funds in the region."

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