According to Eurekahedge Pte, the asset of the Singapore Hedge funds increased in August by US$21 billion.
The research firm based in Singapore said in a report that the profit of the industry through performance reached US$8.8 billion, while the net inflows totalled to US$12.6 billion, which accounted to US$1.38 trillion total assets under the management.
The research firm said that the Eurekahedge Hedge Fund Index had tracked over 2,000 funds, which had pushed the year-to-date increase to 13.2 percent. The positive figures indicated the augmented confidence of the investors in the hedge funds.
Gavin Tan of Paddington Asset Management said, “Economies in the region have been very resilient and it is natural that there is a steady flow of money back to emerging markets. Our assets under management has grown steadily – up 60 per cent from the beginning of the year.”
The research house also added, “We expect the rate of asset inflows to pick up in 4Q2009 and estimate assets under management as at end-2009 to be close to US$1.5 trillion.”
Geographically, nearly all regions had good performance. However, Asian managers except Japan had underperformed. About 0.6 percent was the incurred losses of the Eurekahedge Asian Hedge Fund Index, as stocks in Taiwan, Hong Kong and China had plummeted.
In particular, the shares of Shanghai ‘A’ declined by 20 percent, which dragged down other closely related markets in the Greater China.
In 2008, due to the dipping equity markets, Asian hedge fund industry encountered substantial redemptions, not to mention the incurred losses, which brought down its size to US$107 billion as of July 2009 from its peak of US$176 billion as of 2007.
Eurekahedge noted that although there was no difference in the present level of assets with that in 2005, compared with the annualized growth rate of 16 percent for the global hedge fund industry, the current level of asset still represented a remarkable annualized growth rate of 24 percent since 2000.
For the time being, developed markets in Europe and the United States did not perform well despite the strong economic data.