Asia hedge funds net $500 mln in Aug, assets at 32-mth highs

HONG KONG Wed Sep 21, 2011 1:12pm IST

Arrangement of various world currencies including Chinese Yuan, Japanese Yen, US Dollar, Euro, British Pound, Swiss Franc and Russian Rouble pictured in Warsaw January 26, 2011. REUTERS/Kacper Pempel/Files

Arrangement of various world currencies including Chinese Yuan, Japanese Yen, US Dollar, Euro, British Pound, Swiss Franc and Russian Rouble pictured in Warsaw January 26, 2011.

Credit: Reuters/Kacper Pempel/Files

Related Topics

HONG KONG (Reuters) - Asia-focused hedge funds attracted a net inflow of about $500 million in August, increasing their total inflows for 2011 to $7 billion, as investors shrugged off volatile markets and raised bets on the region's fast growth, new data showed.

Flows this year has exceeded last year's when these funds got net inflows of $4 billion, data released on Wednesday by Singapore-based hedge fund tracker Eurekahedge showed.

European hedge funds saw net outflows worth $2.8 billion in August, while North American funds attracted net inflows of $4.8 billion, the data showed.

Total assets under management of the Asian hedge funds tracked by Eurekahedge rose to $136.1 billion at the end of August, the highest since December 2008.

While cumulative hedge fund assets in Asia remain about $40 billion below their peak hit in December 2007, the industry is seeing a revival from the global financial crisis, with some funds attracting hundreds of million of dollars.

High-profile funds such as Azentus, launched by former Goldman Sachs trader Morgan Sze, and the ones planned by Carl Huttenlocher, the former Asia head of JPMorgan Chase & Co's Highbridge Capital and Oasis Management's Seth Fischer are expected to boost industry assets further this year.

Asian hedge funds, including those betting on Japan, received a net inflow for the 16th consecutive month in August, the data showed, helped by outperformance in 2011.

The regional funds, as measured by the Eurekahedge Asia index, lost about 2.7 percent in the first eight months of the year. By comparison, the MSCI AC Asia Index was down about 10 percent.

In August, the funds lost about 3.5 percent compared with the 9.2 percent decline in the MSCI AC Asia Index as stocks across the region slumped on worries about the health of the U.S. economy and the European sovereign debt crisis.

(Editing by Muralikumar Anantharaman)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Earnings Season

Reuters Showcase

Obama In India

Obama In India

In parting shot, Obama prods India on religious freedom.  Full Article 

Market Rally

Market Rally

Sensex, Nifty hit record high for fifth straight session.  Full Article 

Restructuring

Restructuring

Max India to be split into three separate companies.  Full Article 

India’s Male Tenor

India’s Male Tenor

India’s lone male tenor wants to ‘Indianise’ opera  Full Article 

Indian Equities

Indian Equities

Hornbill raising $250 mln to invest in equities - partner.  Full Article 

Ratings Downgrade

Ratings Downgrade

S&P downgrades Russia's sovereign credit rating to "junk".  Full Article 

Facebook Outage

Facebook Outage

Facebook takes blame for service outages, which hit wider Web.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage