Asian hedge fund capital hits new high of US$112b: report

TOTAL capital invested into Asian hedge funds reached around US$112 billion last year, surpassing the record set in 2007, according to the HFR Asian Hedge Fund Industry Report. The previous high of US$111 billion was recorded in 2007, before the onset of the global financial crisis, said HFR, a Chicago-based firm that specialises in hedge fund analysis.

Total assets managed by Asian hedge funds were boosted by investor allocations and performance gains, the report said. In the fourth quarter last year, investors allocated some US$4.2 billion of new capital in Asian hedge funds, the biggest quarterly inflow since the first quarter of 2008 when HFR started collecting data.

HFR president Kenneth Heinz said: "2013 was an exceptional year for the Asian hedge fund industry, posting strong performance gains across the region as assets surpassed the pre-financial crisis peak, both despite divergent equity market trends across developed and emerging Asia.