With fees under fire, funds cuts costs

Singapore

WHEN Ruhong Huang's Hong Kong-based hedge fund crossed a key milestone after gathering US$100 million in assets, he made an unusual choice. Rather than continuing to go it alone, he decided to join a "platform" to help his firm with everything from hiring administrative staff to handling compliance.

While Mr Huang's move is uncommon, he isn't alone. Hedge fund platforms in Asia, which traditionally have helped fledgling firms with a few million dollars set up shop, are now seeing bigger managers turn to them to help save as much as 90 per cent of their annual operating costs.