UPDATE 1-Boyer Allan shutting China, Asia hedge funds - sources

Fri Dec 16, 2011 12:54am EST

By Nishant Kumar

HONG KONG Dec 16 (Reuters) - Boyer Allan Investment Management is shutting two of its hedge funds after losses and a fall in assets this year, four sources familiar with the matter said, lengthening the list of Asia focused funds that have closed this year.

The company, which managed about $1.8 billion in three products before the financial crisis, was shutting its pan-Asia Boyer Allan Pacific fund after an 18.7 percent loss up to the end of November, two of the sources said.

It is also shutting the Boyer Allan Greater China fund, which has lost 7.8 percent this year. The firm will continue to run its Boyer Allan Pacific Opportunities fund.

Assets under management of the three funds had dropped to about $375 million at the end of November from $638 million at the start of the year.

Jim Sweeney, Boyer Allan's chief executive in Hong Kong, declined to comment.

Boyer Allan was founded in 1998 by Nick Allan, former head of emerging markets at Dresdner KB Securities, and Johnny Boyer, former fund manager of Jardine Fleming.

The firm had 33 employees in April at its offices in Hong Kong and London, according to a fund document seen by Reuters.

More than 123 hedge funds in Asia have shut down this year, inching closer to 2008 when 180 funds closed, according to industry tracker Eurekahedge, as investors shy away from allocating fresh capital to the region, given nagging concerns about the global economy and the European debt crisis.

Asian hedge funds saw net outflows of $2.2 billion in September and October, erasing nearly a third of the inflows in the previous eight months, data from Eurekahedge showed.

Singapore-based RSR Capital is returning money to external investors and plans to change the fund's strategy for a possible relaunch next year, Chief Operating Officer and Founding Partner Christophe Delorme told Reuters.

Britain-based Wessex is closing three hedge funds, including one that invests in Asia-Pacific, the money manager said in a letter to investors earlier in November.

Singapore-based Komodo Capital is liquidating its flagship global macro fund KC Asia, while Japanese hedge fund FGI Capital Partners closed two hedge funds in June.

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