| HONG KONG, March 21
HONG KONG, March 21 Asia-focused hedge funds
added $20 billion in assets in 2013, recording their first
growth in three years and boosting the industry's size to $158.8
billion, according to a survey from tracker AsiaHedge.
The industry still remains about $33 billion below its peak
asset level hit in 2007, but the twice-a-year survey shows that
investors are starting to return.
"This dispels the notion that Asian hedge funds have fallen
off the radar for global allocators," said Aradhna Dayal, head
of Asia for HedgeFund Intelligence, which runs AsiaHedge.
"We have seen assets in some of the large, home-grown
managers swell considerably last year," she added.
A 13.6 percent median return in Asian hedge funds, strong
gains by China and Japan-focused managers, and a $3.85 billion
capital flow into new launches last year helped the turnaround.
In another sign of a maturing industry, the survey found
that nearly 80 percent of the assets invested in Asia hedge
funds were now being run from within the region, up from just 52
percent in 2000 and 71 percent in 2009.
Assets at distressed and special situation hedge funds
doubled to $6.3 billion in 2013, while Japan-focused funds
recorded a 35 percent increase in assets to $19 billion.
Assets at China and Greater China equity long/short funds
rose to $20.8 billion, making it the largest fund category in
(Reporting by Nishant Kumar; Editing by Matt Driskill)