New Asian hedge fund assets drop by a fifth to $3.85 bln

HONG KONG Tue Feb 25, 2014 1:34am EST

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HONG KONG Feb 25 (Reuters) - Hedge funds launched in Asia in 2013 raised a fifth less than a year before as more managers launched funds with smaller sizes, according to a survey.

As funds found it tougher to attract investors in one of the industry's quietest years since the global financial crisis in 2008, new funds raised $3.85 billion, according to the twice-a-year survey from AsiaHedge. That was down from a record $4.74 billion in assets in 2012.

The number of new hedge funds increased by about a tenth to 71 in 2013 from 65 a year earlier, indicating that launch sizes got smaller.

Last year's collection featured only one fund, from Asia Research & Capital Management, that raised $1.1 billion in the region's biggest launch last year.

"Much of this slowdown can be attributed to the longer gestation period that new funds in Asia, and indeed across the world, are facing," said Aradhna Dayal, head of Asia for HedgeFund Intelligence which runs AsiaHedge.

Hong Kong strengthened its position as Asia's hedge fund capital last year as more than half of the assets raised by new funds flowed into the city's managers.

Rival Singapore-based managers raised only $469 million, the survey showed. New Japanese managers raised just $100 million, while Australia-based funds collected $256 million. (Reporting by Nishant Kumar; Editing by Kenneth Maxwell)

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