Strength through diversity

The Asian hedge fund industry has changed dramatically in the last decade - from small players with limited means of hedging to a powerhouse offering a range of strategies

The Asian hedge fund industry has come a long way in a relatively short period of time. At the time of the 1997/1998 financial crisis in the region, there were, worldwide, just a handful of hedge funds with a sole Asian focus, managing less than $5bn of assets. Today, despite the contraction that has taken place as a consequence of the 2008/2009 global credit crisis, more than 1,100 managers exist, controlling assets in excess of $130bn. That equates to approximately 8% of the world’s hedge fund assets. Originally, with only very limited means of hedging economic risk other than via e...