CORRECTED-Henderson, Tantallon shut Asian hedge funds

Thu Mar 1, 2012 10:35pm EST

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SINGAPORE/HONG KONG, March 2 (Reuters) - Henderson Group said it has shut its Asia-Pacific Equity Multi-Strategy Fund, and a source said Singapore-based Tantallon Capital is winding down its long-only Asia ex-Japan Bass Rock Fund, signaling tough time for Asia's hedge fund industry.

Asian hedge funds suffered net outflows in the last four months of 2011, according to Eurekahedge. The fund tracker estimates nearly seven in 10 Asia funds have fallen below their "high water mark" -- the peak net asset values above which they can charge performance fees.

AsianInvestor, an industry publication, said British-Australian fund manager Henderson decided to close its $30 million Asia-Pacific multi-strategy fund due to the difficulty in attracting investments.

Separately, an industry source told Reuters the Bass Rock Fund lost 28 percent of its value last year. The source requested anonymity because the information was not public.

According to AsianInvestor, the Tantallon fund had only $14 million in assets at the end of last year.

Both funds were managed out of Singapore.

A Henderson spokeswoman confirmed the fund closure while Tantallon declined to comment.

Hedge funds investing in Asia lost 8.5 percent on average last year as largely long-biased portfolios failed to absorb market shocks, according to Eurekahedge data.

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