A main topic of conversation among hedge funds in Hong Kong has nothing to do with raising funds or volatility; it has to do with air quality that is so bad that it could ultimately have a negative impact on the clogged city’s claim to financial supremacy in the region. According to the Financial Times, a number of HFs are turning their noses up at the city because of the horrible pollution and turning their eyes toward the fresher air of Singapore as a quality-of-life decision. One executive told the FT, “There are hedge fund partnerships where there is an element of strife over air pollution. One partner wants to stay in Hong Kong, while the other partner wants to move to Singapore for the sake of the family.” The exodus apparently had already begun. U.S.-based hedge funds Stark Investments and Concordia reportedly are already making the move, and Deutsche Asset Management’s Asian head, Ed Peter, has set up house in Singapore, where Deutsche manages most of its $28 billion in Asian assets anyway. This all plays in the hands of Singapore, which recently eased legislation and has embarked on an aggressive marketing campaign to attract more financial business and vie for the Asian sector crown. Meanwhile, Hong Kong is making a serious effort to stem the tide of departing pollution-sensitive investment types by improving local emission levels, 70% of which are said to be wafting in from across the China border.