Friday, December 31, 2010

Asian Hedge Fund News

I received an alert from Albourne Village about small hedge funds in Asia.  They were having trouble competing with large hedge funds, as measured by assets under management (AUM), for investors.  Institutional investors want a fund to have at least $100 million USD AUM.  Most funds (67%) in Asia have less than $50 USD AUM.  There are increasing operational, compliance and risk management costs for the small funds.  Finally, there is doubt that the manager can continue the fund's performance if AUM increase.  The article can be accessed here.

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