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Written by Summer Jen
HONG KONG (Reuters) – Just 62 new hedge funds were launched in Asia last year, the lowest number since 2009, and just 15 focused on China, according to data provider Preqin. .
However, the number of Japan-specific funds more than doubled to 19.
Why is it important?
The figures underscore the shift away from China as the world’s second-largest economy struggles amid a crisis in its real estate sector and trade tensions with the United States.
Rather, market participants say there is growing demand for Japan strategies, pan-Asia strategies, and multi-manager strategies.
Look at the numbers
*According to the data, liquidations will outnumber creations in 2023, with 74 funds closing, almost half of which were China-focused funds.
– Only 15 China-focused hedge funds were launched, down sharply from 34 in 2022 and the lowest number since 2004.
what’s next
At least three multi-manager hedge funds investing in various asset classes are expected to be launched this year, according to market participants and allocators.
One of these will be launched by Arrowpoint Investment Partners, run by Jonathan Xiong, former Asia co-CEO of Millennium Management. Bloomberg first reported the fund’s launch.
The company has raised about $1 billion from investors, said the people, who were not authorized to speak to the media and requested anonymity.
Mr. Xiong declined to comment.
Quote
Patrick Ghaly, managing partner at Sussex Partners, remains cautious about the potential for a significant increase in new fund launches this year.
“While there is a lot of interest in Japan at the moment, many investors do not fully understand the incredible alpha opportunity in that market and are instead investing in long-only funds,” he said. ”, referring to the potential for higher returns. outperforming market benchmark gains.
(Reporting by Summer Jen; Editing by Edwina Gibbs)
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