2 Dec 2010
In its most recent client monthly newsletter, GFIA pte ltd, provided an overview of the newly launched Asian hedge managers or funds that incepted during 2010. GFIA’s study confirmed that most of the new firms seen so far were started by second generation hedge fund managers from either large hedge fund houses, or previous successful
boutique funds.
Summary findings include:
- Of the 18 funds in GFIA’s list, 5 are not newly set up management companies.
- Of 13 new hedge fund management companies reviewed this quarter, only two had portfolio managers without previous hedge fund management experience.
GFIA pte ltd also released findings on how the correlation between different hedge fund strategies and their benchmark indices within a seemingly diversified portfolio changed during the credit crisis, concluding that equity long-short strategies became more correlated after the global financial crisis, while non-equity long-short strategies
maintained their low cross-correlations.
boutique funds.
Summary findings include:
- Of the 18 funds in GFIA’s list, 5 are not newly set up management companies.
- Of 13 new hedge fund management companies reviewed this quarter, only two had portfolio managers without previous hedge fund management experience.
GFIA pte ltd also released findings on how the correlation between different hedge fund strategies and their benchmark indices within a seemingly diversified portfolio changed during the credit crisis, concluding that equity long-short strategies became more correlated after the global financial crisis, while non-equity long-short strategies
maintained their low cross-correlations.
Peter Douglas CAIA, principal of GFIA, commented: “The Asian hedge fund landscape is changing rapidly. New managers know their trade already, and they don’t accept that a hedge fund should be naturally net long or an extension of a mutual fund”.
