Breathtaking returns have attracted so much money to Asia-focused hedge funds that their assets under management have already reached $176 billion as of May this year, a level not seen since before the 2008 financial crisis spurred by the collapse of the Lehman Brothers.
According to Eurekahedge, the strong gain in the AUM was largely due to China, which has been a magnet for investments following a rally in its equities market. The firm though does not yet have the data yet for China, as well as a breakdown of the Asian AUM per country.
The Chinese equity market has been rising and lately soared to seven-year highs, thanks to optimism that the government will take more measures to prop up growth, as well as the implementation of initiatives that opened up much of the “A” share market to offshore investors including the Shanghai-Hong Kong Stock Connect program and the mutual fund recognition agreement with the former British colony.
For the first five months of the year, the Eurekahedge Greater China index returned 25.21%, outperforming the rest of the world, including Asia ex-Japan, which rose 14.78% during the same period.
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