This Financial Insights study examines the explosive expansion of hedge funds in Asia/Pacific as the global community begins allocating capital into one of the world's fastest-growing regions. Financial Insights also discusses the lure of hedge funds, the industry configuration in countries such as Hong Kong and Singapore that have made big strides in channeling hedge funds into part of mainstream investments, and conversely, the challenges stemming from growth. The study further explores the few trends for hedge funds that are resonating across the region and extends suggestions for institutions and vendors interested in tapping into the exponential growth.
"With growing influx of foreign capital, we envision the Asian hedge-fund market catapulting almost 40% to $90 billion in 2005. There is still ample room for compounded growth, as regional hedge funds constitute 7.5% of global numbers against a 15% contribution to world stock market capitalization," comments Li-May Chew, CFA, senior research manager for Financial Insights Asia/Pacific Capital Markets Advisory Service.
"The industry may be nascent, but with more stringent regulations in place compared with those in the United States, interest in Asian hedge funds continues to intensify. Financial Insights believes hedge funds will become entrenched in the Asian market."