If Europe's allocators believe Asia is risky, and Asia's hedge funds are a 'step too far', data from Eurekahedge may change their perceptions.
If Europe’s allocators believe Asia is risky, and Asia’s hedge funds are a ‘step too far’, data from Eurekahedge may change their perceptions.
Admittedly, the average Asian hedge fund is up only a modest 1.35% so far this year, according to the data providers.
That, and an average Sharpe ratio of just 0.03, is ‘nothing to write home about’, as the English say.
If you invested in the average Taiwan-focused manager, you did better, making 8.81%, but apart from that, average returns from the region’s mandates are hardly eye-catching.
But the ‘average’ is just that. Data from Eurekahedge shows, average numbers conceal some spectacular performance by individual hedge funds in the region.
Scanning Asia from the Far East to the bridge on the Bosphorous, Eurekahedge has reported returns from some funds of nearly 40% so far this year.
The Access Turkey Opportunities Fund LLC heads the list, year to date, with 39.97%, followed by Toccata Capital fund with 38.35%, and Areca Real Estate Partners with 38.11%.
Four more have made over 25% so far this year (Greenwoods China Alpha fund, BMA Pakistan Opportunities fund, Quantedge Global and Yellow Cyprus Opportunities), while Australian Leaders, CFB Convertibles Fund PLC – Far East Sub Fund, and Aleutian fund all topped 20%.
Yellow Cyprus Opportunities made 13.9% in August alone, with SAC Global Energy and Mining making 13.1%. The Horizon Growth fund was true to its name that month, growing by 7.8%, while Toccata Capital fund made 7.5%.
Looking at the returns from Asia’s hedge industry from 2011 not only shows some similarly impressive returns from hedge funds, but also a breadth of strategies European allocators might not expect from the region’s hedge funds.
One of the region’s most experienced investors in hedge funds is keen allocators in the West not hold onto preconceptions they may have held about the industry from years ago.
“Asia has a strongly developing hedge fund market and lots of potential in the coming year as volatility is likely to remain high across the globe. We see a broad spectrum of hedge fund strategies with Asian emerging manager candidates.”The Asia Pacific industry can participate in relative-value, and multi-strategy, and event-driven, and convertibles and credit.