Hedge Funds in Asia-Pacific Alternative Assets

Home , Assets under management, Dymon Asia

The Facts Hedge Funds in Asia-Pacific alternative assets. intelligent data.

Hedge Funds in Asia-Pacific

Using data from Preqin’s Hedge Fund Online database, we provide an overview of the hedge fund industry in Asia-Pacific, looking at fund launches, asset flows, largest managers, performance and investors.

884 1,709 585 12% Number of Asia-Pacific-based Number of active hedge funds Number of institutional hedge Proportion of global hedge hedge fund managers profiled managed by Asia-Pacific- fund investors profiled on fund investors located in Asia- on Preqin’s Hedge Fund based hedge fund managers. Preqin’s Hedge Fund Online. Pacific. Online.

Fig. 1: Asia-Pacific-Based Hedge Fund Launches by Year Fig. 2: Performance of Asia-Pacific-Focused Hedge of Inception Funds

250 10% 217 9% 8.74% 198 200 8% 7.47% 162 6.94% 6.84% 7% 6.42% 148 146 150 137 139 6% 5.40% 5.64% 5.49% 108 101 100 5% 100 96 4.07% 4% Net Return 62 67 55 3%

No. of Fund Launches 46 50 34 2% 1.76% 15 20 1% 0 0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 12 Months 3-Year 5-Year 3-Year Annualized Annualized Volatility Pre-2000 2016 YTD 2016 Year of Inception Asia-Pacific All Hedge Funds Source: Preqin Hedge Fund Online Source: Preqin Hedge Fund Online

Fig. 3: 10 Largest Asia-Pacific-Based Hedge Fund Managers

Manager Headquarters Year Established Assets under Management Hillhouse Capital Management China 2005 $17.8bn as at 30 March 2016 Platinum Asset Management Australia 1994 $17.8bn as at 30 September 2016 Value Partners Hong Kong 1993 $14.6bn as at 31 March 2016 MCP Asset Management Hong Kong 2002 $6.0bn as at 30 September 2016 PAG Absolute Returns Hong Kong 2002 $6.0bn as at 31 August 2016 Dymon Asia Capital Singapore 2008 $4.5bn as at 1 May 2016 Graticule Asset Management Asia Singapore 2014 $4.4bn as at 31 March 2016 Greenwoods Asset Management Hong Kong 2004 $4.4bn as at 31 July 2016 Myriad Asset Management Hong Kong 2011 $4.0bn as at 31 March 2016 Tybourne Capital Management Hong Kong 2010 $4.0bn as at 31 July 2016

Source: Preqin Hedge Fund Online

The Facts Hedge Funds in Asia-Pacific alternative assets. intelligent data.

Fig. 4: Asia-Pacific-Based Hedge Fund Investors and Fund Managers by Location

SOUTH KOREA 41 18

JAPAN CHINA 120 INDIA 26 50 50 14 HONG KONG 29 96 SINGAPORE 319 66 163 AUSTRALIA OTHER 182 22 121 19 NEW ZEALAND 21 9 No. of Investors No. of Fund Managers Source: Preqin Hedge Fund Online

Fig. 5: Asia-Pacific-Based Institutional Investor Views on Fig. 6: Regional Preferences of Asia-Pacific-Based Hedge Fund Performance in the Past Year Institutional Investors in Hedge Funds

80%

70% 68% 14% 60% 57% 49% Exceeded 50% General 7% Expectations Preference 40% 32% Met 30% 27% 2016 23% 23% Expectations 19% Mandate 20% 17% 10%

Fallen Short of of Fund Searches Proportion 10% Expectations 0% 79% Asia- Pacific Global Europe North Markets America Emerging Region Source: Preqin Investor Interviews, June 2016 Source: Preqin Hedge Fund Online

Fig. 7: Strategy Preferences of Asia-Pacific-Based Fig. 8: Asia-Pacific-Based Institutional Investor Views on Institutional Investors in Hedge Funds the Key Issues Facing the Hedge Fund Industry

50% 46% 45% Volatility/Uncertainty 45% 45% 43% 63% 41% in Global Markets 40% 34% 35% 32% 30% General Performance 63% 30% 26% 28% Preference 25% 24% Fees 56% 20% 17% 17% 2016 15% 12% Mandate Perception of the 10% 31% Industry by the Public 5% Proportion of Fund Searches Proportion 0% Transparency 25% Niche Equity Credit Macro Regulation 19% Strategies Strategies Strategies Strategies Strategies Strategies Event Driven Event Multi-Strategy

Relative Value Relative 0% 20% 40% 60% 80% Strategy Proportion of Respondents Source: Preqin Hedge Fund Online Source: Preqin Investor Interviews, June 2016