'I decided not to wait the cycle out but to do something more productive with my time', said Smith, 53, who remains in the city heading the Asia-Pacific office of the nonprofit CFA Institute, the global association of chartered financial analysts. 'The hedge-fund industry in Asia will continue to struggle to raise funds for the next few years as banks continue to have liquidity issues'.
Bloomberg reports that hedge-fund managers, traders and analysts in Asia are quitting as assets have failed to recover after the 2008 global financial crisis, and trading losses have left a majority of funds unable to collect performance fees. They’re moving to mutual funds, endowments, consulting firms and companies outside of the money-management business, often at a cut in pay.
Asian hedge-fund assets are 28% below their 2007 peak, according to data provider Eurekahedge Pte. Globally, money overseen by the funds increased 21% since 2007 to a new high of $2.3 trillion as of December, data from Chicago- based Hedge Fund Research Inc. show.
A total of 296 Asian hedge funds liquidated in the two years to December, 33 more than the number that started. On a global basis, 1,839 new funds outnumber those that shut by 371, according to Eurekahedge.
Hit the link below to access the complete Bloomberg article: