Asia-focused hedge funds – especially India and Japan strategies – continued their heavy slide last month, while emerging-market and global mandates made slight gains.
Demand for Myriad's second fund spurs launches as evidence shows more Asia-focused funds are managed in Asia. At the same time global macro's revival bodes well for Singapore.
China-focused hedge funds' strong July gains put them narrowly into the black for the year, while India strategies fell slightly last month as post-election euphoria waned.
China-focused hedge strategies posted the strongest gains last month, largely due to rebounding equity markets, as Japan funds continue to shine.
HFR data shows that Asian hedge funds lost money in 2011, both from the market and from investor redemptions.
Poor performance in the third quarter drags down regional hedge fund assets, according to the latest data.
August saw the sector record its worst monthly stats so far this year, further clouding a weak performance in 2011. But research house HFR sees some cause for optimism.
Fewer launches from Asia puts the region behind the global growth rate.
HFR numbers show the Asian hedge-fund industry has received the largest net inflow of capital in any quarter on record.
Emerging-market hedge funds recorded net outflows in the second quarter, just as they did in the first, says Hedge Fund Research.
The inflows are linked to positive sentiment on China, strong Indian hedge-fund performance, increased fund-launch and corporate-deal activity, and renewed interest in Japanese funds.
But Hedge Fund Research Inc awards that dubious honour to Latin America funds. Either way, says GFIA, Asia-based hedge funds perform better than their Asia-focused peers outside the region.