By Nishant Kumar
HONG KONG Dec 16 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.