Bloomberg reports that Hedge funds with assets of less than $100 million in the Asia Pacific region are turning to millionaires and family offices for investments as institutions favor funds with more than that amount and proven track records.
E Fund Management Co., which in April started China’s first officially registered hedge fund, raised $100 million from the nation’s rich. Singapore-based Iridium Asset Management started trading last year with money from the founder’s family, while Regal Funds Management Pty Ltd.’s eight-month-old quantitative fund is aiming to tap family offices, which make up 40 percent of the Australian manager’s flagship market-neutral strategy.
Europe’s escalating debt crisis and a global economic slowdown have pushed volatility on equity markets to a two-year high, making hedge funds more important for wealthy investors because of their low correlation to market moves. The money from rich individuals and families is keeping smaller managers afloat, as pension funds and other institutions that write bigger checks favor hedge funds managing more than $100 million.
“It is always hard to raise money for new startup hedge funds, but it is generally easier from family offices and private wealth,” said Zhen Liu, managing director of index and quantitative investment at Guangzhou-based E Fund Management…”
Find out more at http://www.businessweek.com/news/2011-11-15/asia-s-small-hedge-funds-woo-millionaires-amid-cash-squeeze.html
No comments:
Post a Comment