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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
However, neither the US nor European hedge fund markets can match the meteoric rise of the Asian industry in recent years.<\/p>\n