Asia Spotlight: Outlook for Capital Raising Amongst Hedge Fund Managers

Asia’s hedge fund industry is undergoing a transformation, including a shift from historically equity-centric managers to a broader set of strategies, including multi-strategy, Asian macro and credit-focused strategies; and also a move from initially European allocators looking at managers on the continent to now North American investors paying more attention to them.  Yet emerging managers, both in Asia and around the world, continue to face the same challenges, namely capital raising. In Asia, these challenges are exacerbated by extreme distances between managers and the investors they wish to attract, and an industry still in its infancy compared to the U.S. and Europe.

At the most recent EisnerAmper-sponsored Chinese Alternative Asset Management Professionals (CAAMP) event, headed by Cindy Shen, a partner in the firm’s financial services group, panelists discussed how emerging managers in Asia are well-positioned to receive capital. Here were a few points mentioned:

  • North American investors, including seeders, family offices, funds of hedge funds and other groups looking for early-stage managers, are increasingly looking at Asia-based managers for returns with low or no correlations to those in the U.S. and Europe.
  • Asia funds give investors diversification to their portfolios.
  • While headlining-grabbing industry redemptions have come from some of the larger funds, managers in Asia are increasingly capturing attention as they look for new and differentiated sources of returns.
  • Finally, the nimbleness and agility demonstrated by a small group of Asia’s emerging managers may make them attractive.

EisnerAmper would like to thank the speakers for their time and insights:

  • Michael Dubin, Senior Advisor, Silvercrest Asset Management Group
  • Deborah Lee, Founder, Daedal Partners

Elana Margulies-Snyderman is an investment industry reporter and writer who develops articles, opinion pieces and original research designed to help illuminate the most challenging issues confronting fund managers and executives.

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