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.