MFA Blog

Asian Hedge Fund Capital Reaches New Record

Posted on February 12, 2014

New data from Hedge Fund Research show today that the total amount of capital in Asian hedge funds grew to $112.3 billion, a new record.

According to HFR, “asset growth for both 4Q and January 2014 was driven by investor allocations, as well as performance gains.”  Investor allocations of $4.2 billion in the fourth quarter of 2013 represented the highest quarterly inflows since the firm began tracking the data in 2008.  The new capital brings full year 2013 inflows to $10.5 billion, also a calendar year record.

Equity Hedge and Event Driven strategies dominated hedge fund inflows for the time period, bringing their 2013 totals to $6.9 billion and $2.2 billion respectively, allocated for the year.  Strong performance also pushed Asian hedge funds higher for the year, with the HFRX Japan Index gaining 6% in the fourth quarter to finish FY 2013 with a 32.8% gain.  That calendar year performance only slightly trails the record gain of 2005 when the index posted a 33.1% return.

“2013 was an exceptional year for the Asian hedge fund industry, posting strong performance gains across the region as assets surpassed the pre-financial crisis peak, both despite divergent equity market trends across developed and emerging Asia,” said Kenneth Heinz, president of Hedge Fund Research.

Read more about the Asian hedge fund industry from Finalternatives, and read more about the data from Hedge Fund Research.