The Australian – THE top 25 Asia-based funds now manage $US22.6 billion ($30 billion) in assets, signalling a growing shift in the hedge fund industry towards emerging Asian markets as well as Japan.
The figures come from Institutional Investor’s Alpha, which will this week release its inaugural ranking of the 25 largest hedge funds based in Asia.
The largest Asian fund was Tokyo-based Sparx Asset Management, which had $US5.2 billion in assets at the end of 2005. PMA Capital ranked second with $US2.1 billion — Sparx acquired the Hong Kong-based firm last month.
Rounding out the top five are Appleby’s ADM, Ward Ferry and Penta, three Hong Kong firms with $US1.44 billion, $US1.40 billion and $US925 million respectively, at the end of 2005.
The size of the Asian hedge fund market pales in comparison with the US and European markets. The US-based hedge funds run by Goldman Sachs and Bridgewater Associates each manage more than $US20 billion.
Indeed, few of the indigenous hedge funds are among the better-known players in the industry, with Sparx the only Asian hedge fund firm turning up on Institutional Investor’s list of the 100 largest firms.
However, neither the US nor European hedge fund markets can match the meteoric rise of the Asian industry in recent years.
