Assets managed by the Asia-Pacific hedge fund industry rose by more than a fifth in 2014 to surpass their pre-financial crisis high reached in 2007.
The results from the AsiaHedge Asset Survey by data provider Hedge Fund Intelligence suggest the slow recovery of hedge fund investing in the region may finally be gathering pace.
Asia-Pacific hedge funds managed an estimated $192 billion at the end of 2014, says the firm, with approximately 86% of this total managed by investment professionals in Asia.
"While in earlier years New York and London courted some of the biggest Asia funds, managers today are opting for Shanghai, Mumbai, Sydney, Singapore and Hong Kong as their main operating bases," says the report by Hedge Fund Intelligence.
Among these cities, Hong Kong has emerged as the most popular centre for managing Asian hedge funds with an estimated 35% of Asian hedge fund assets managed there, says the report.
According to Hedge Fund Intelligence's ranking, which relies on estimates because many hedge funds do not reveal their precise assets under management, Hillhouse Capital Management is the largest regional fund house with an estimated $16.3 billion under management.
Platinum Asset Management is second with $16.2 billion. There is a big gap before third-placed Value Partners, which has $5.8 billion.
China-focused strategies were the most popular fund type, according to the data, accounting for 17% of industry assets.
"This is not surprising," says the report, "given the number of strong China focused launches and excellent returns by China funds on the back of a revival in A-share markets."
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