Tactical Warning : Hedge Fund more transparency in Asia
Asian hedge funds, starved of capital, are increasingly giving up their treasured secrecy and allowing clients more control of their investments in order to draw money from institutions.
Institutions are embracing the product as they are still scarred by the memories of the 2008 financial crisis
There is now a demand for more transparency and liquidity.
About 65 per cent of Asian funds have US$50 million or less in assets in hedge funds ,( Eurekahedge ). This creates a problem to invest additional capitals even if these fund represent ,on average, a bit more of the 10% of each hedge fund ´s assets. .
An example of the (potential crisis) is given by the bigger hedge funds in Asia : Macquarie Funds Group .
Till now it requires a minimum of US$100 million to run a managed account but some managers are willing to provide the service for as little as US$5 million..
But at the same time BNP Paribas’ unit Theam plans to quadruple its investment in Asia-focused hedge funds to 200 million euros (S$350 million) over the next year and about a third of that would be invested through the managed accounts route.
And all happens while the global hedge fund industry has regained its pre-crisis asset level when AsiaHedge informs that assets in Asia contracted 5 per cent in the first half of 2011 to US$145 billion, US$47 billion below the peak level hit in December 2007.
in Asia there is an huge need of money to fund them… .
Tactical Warning Finance : keep an eye there if you think to a default and do it before you keep an eyes in a German or French bank.
Tactical Warning Geopolitics : who will pay ? Who needs the most stability and that does not mean to be the stronger !
Prosumerzen Intelligence Unit