By Saeed Azhar and Kevin Lim
SINGAPORE (Reuters) - Singapore's Artradis Fund Management said on Tuesday its assets grew almost four times in the last year to $4 billion as it profited from increased volatility in Asian stocks.
But matching last year's strong performance may not be easy as financial risks are now more accurately priced, Julian Ings-Chambers, a managing director at the firm, said at the Reuters Hedge Funds and Private Equity Summit in Singapore.
"It's unlikely that we are going to repeat the same performance of last year simply because the mispricing of risk has largely been removed," Ings-Chambers said.
Ings-Chambers said stock market volatility would remain high this year as the market still needed to reduce excessive borrowing in the financial system, despite the Federal Reserve-led rescue of Bear Stearns BSC.N that prevented a meltdown in the U.S. financial sector.
"What it (the Fed) hasn't done is to remove the core problem of what is unsettling markets at the moment, which is the de-leveraging process that over the last six months has been extremely painful," Ings-Chambers said.
"I expect markets to have moments of extreme concerns again later this year."
Artradis' two core funds that bank on making money when markets are volatile have performed well amid the recent market downturn.
The AB2 Fund rose 57 percent last year and has gained nearly 18 percent so far this year. The Barracuda Fund rose 35 percent last year and is up almost 11 percent so far this year. Continued...
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