Assets At Big Asia Hedge Funds Soar 57%

Date: Tuesday, July 24, 2007
Author: Hedge Fund Daily

Assets at the 25 largest hedge fund managers in Asia soared 57% through the end of March to $35.5 billion, compared with $22.6 billion at the end of 2005, according to Alpha magazine. Alpha -- which changed its survey period to the end of March from the end of the year -- found that eight of the top 10 hedge funds based in Asia can be found equally in Singapore and Hong Kong, but leading the list is Tokyo-based Sparx Asset Management, with $6.65 billion. However, notes Alpha, “Despite their domination in the 2006 Asia 25 ranking, Japanese firms clearly take a back seat to China-based firms this year.” Clearly, indeed, as China’s CSI 300 Index skyrocketed 121% last year, compared with Japan’s counterpart, the Nikkei 225 Stock Average, which climbed just 6.9%. In second and third place behind Sparx is Hong Kong-based Value Partners, with $4.77 billion, and Singapore-based Arisaig Partners, at No. 3, with $2.1 billion. Neither was even in the top 25 last survey, and their arrival pushed out two Japanese firms from the top 10, Myojo Asset Management and Plaza Asset Management. Rounding out the top five were Penta Investment Advisors of Hong Kong ($1.91 billion) and Hong Kong-based Ward Ferry Management ($1.78 billion). It should come as no surprise that three of the top five also specialize in long/short, the most popular strategy in the region, especially since short-selling isn’t popular among regional regulators and is forbidden in China. Value focuses on long-bias equity, while Arisaig is identified as an activist fund.