Tag: Hedge Funds

Oasis Management Hong Kong, along with many other Asia-based hedge fund managers, are generally pleased with the rewards which were reaped during the past year. Analysts were able to conclude that despite some of the risks endured over the course of 2012, the final outcome was of a positive nature.

Observers noted that all of the strategic mandates came out ahead in December with the best hedge funds in the multi-strategy category, posting gains of 2.37 percent for the month and 8.55 percent for the year.

Hedge funds finished the year on a positive note in general, with all regions showing in-the-black returns in December, and Asian funds outperforming other regions.

A recent AsiaHedge report showed that total assets in hedge funds in the Asia-Pacific region amounted to $144 billion as of June 2012. This is approaching the peak seen in December 2007 of $192 billion before the tough year for hedge funds of 2008.

The Hong Kong hedge fund sector has been seeing a steady improvement in business as more and more proprietary traders are choosing to move their funds from banks to Hong Kong based hedge funds. This is a sign, say observers, that the industry has turned a corner, boosted by a recent Securities and Futures Commission report that points out that the industry is making a nice comeback in recent weeks.

Following a slow-down and shrinkage of the hedge fund marketplace in 2008 analysts now see a sharp rise in funds flowing from banks to hedge funds in addition to an uptick in the number of international hedge fund managers who are setting up their offices in Hong Kong and elsewhere in Asia.

A yearly report, the Hong Kong hedge fund survey, which is published by the Hong Kong Securities and Futures Commission (SFC) shows clearly that AUM (assets under management) are moving upward. In September 2010 hedge fund assets in Hong Kong were valued at $63.2 billion, a substantial increase from March 2009 when assets in hedge funds reached only $55.3 billion.

“We think it is genuine growth. 2008-09 was a difficult period for the Asian hedge fund industry,” said Giselle Lee, executive director at Man Investments in Hong Kong.

“The industry is now in a growth phase evidenced by two things. Firstly, lots of proprietary traders from investment banks. Some banks have eliminated these desks or they have shrunk dramatically, so lots of prop traders have set up their own shops. And lots of global funds which run Asian books have decided to open an Asian office,” explained Lee.