Overview
Many Asian hedge funds anticipated China’s market correction earlier this summer, but few expected it to be so severe. The Shanghai Composite fell nearly 38 percent in the three months through early September. Despite the losses China-facing funds and retail investors endured, managers expect bountiful investment opportunities looking forward as growth in the region continues. Long-term factors driving development — in particular China’s emerging middle class and economic reforms in broader Asia — are gaining momentum. China is making strides in liberalizing its financial markets and Japanese Prime Minister Shinzo Abe’s Abenomics program is presenting opportunities in Japanese equities. Asia’s 25 largest hedge fund firms, concentrated in Hong Kong, saw assets grow by 56 percent to $106 billion in the year through April. Hillhouse Capital Group enjoyed the biggest boost in assets, rising from $11 billion in 2014 to $20 billion as of April 1, 2015, making it Asia’s largest hedge fund manager for a second consecutive year.
Methodology
In Institutional Investor's Alpha’s 2015 Asia Hedge Fund 25, our tenth annual ranking of Asia’s biggest single-manager hedge fund firms, we provide each manager’s total capital for 2015 and 2014 as of April 1. Where possible we also show capital at the individual fund level, with net 2014 and first-quarter 2015 returns, as well as fund inception dates. Asset totals reflect a firm’s internally run single-manager funds and separate accounts, including actively managed long-only hedge funds. Totals exclude funds of funds, funds managed by third parties, dynamic money market funds, private equity and venture capital. Assets in managed-futures accounts are stated as actual (cash) rather than nominal (trading level) values, unless otherwise noted. Assets run anywhere in the world are included, as long as the firm is wholly owned by a parent company that is headquartered in Asia. We gathered data through questionnaires completed by hedge fund managers, supplemented by II staff research. In some cases asset totals or returns represent our estimates. Senior Editor Jane B. Kenney compiled the ranking with the assistance of Hong Kong–based Researcher Serina To. To request a questionnaire for next year’s Asia Hedge Fund 25 ranking, please e-mail your contact details to hedgefundrankings@iimagazine.com.