Hedge funds: News
Asia-Pacific asset growth slows to 12% in the 1st half of 2006 01/09/2006
Author: Lianna Brinded
The Asia-Pacific hedge fund market posted solid overall growth in assets of around 12% during the first half of 2006, according to the latest mid-year industry assets by AsiaHedge (asiahedge.com).
Overall, Asia-Pacific hedge fund assets grew just over $13 billion during the first six months of 2006, bringing the total to about $128 billion - up from $115 billion at the beginning of the year.
The steady growth over the past six months returns to the industry's more normal pace of expansion after a period of explosively fast growth during the second half of 2005. In that period, assets grew by nearly $40 billion over the six months.
After a period of rapid asset growth (boosted by stellar performance) during the second half of 2005, it comes as no surprise that Japanese equity strategies had a tougher time in the first half of 2006. With most Japan long/short funds nursing losses in the first half of 2006, overall assets in Japan strategies remained static at $48.5 billion - the same level as the end of 2005.
It was in the Asia ex-Japan strategy areas that assets have grown fastest so far this year - up by more than 40% during the first half of 2006 from $14.5 billion to $20.5 billion.
Asia including Japan funds also showed good asset growth, up 18% to finish the first half at $17.7 billion.
By location of manager, all of the major centres saw healthy increases in hedge fund assets - with the exception again of Japan, which shrank a little to stand at $22.3 billion at the end of the half.
Hong Kong-based managers did well to put on $3.7 billion in the first half of 2006 - with China-invested funds being the biggest beneficiaries in this move. Funds managed from Singapore also grew very fast to reach $6 billion by mid-year - up from $3.8 billion at the end of 2005.
However, Australia remains the biggest of the Asia-Pacific hedge fund centres. Assets invested in Australia rose to $30.3 billion from $27.3 billion over the period in question.
