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February 9, 2006
Slow go for hedge funds in Hong Kong
Hedge funds are heading to Hong Kong to set up offices to service investors in Asia, but ironically, the HF headquarter of the Far East is having a tough time attracting big clients.
According to South China Morning Post, institutional investors are just not lining up for hedge funds, largely because of a lack of understanding about them and regulations that have barred the HK$145 billion (US$18.7 billion) Mandatory Provident Schemes Authority from investing in them.
“The demand is just not there because nobody is really pushing for it,” Giselle Lee, Man Investments’ Hong Kong head, told the Post.
She noted that while, in mature markets like the U.S. and Europe, about half the business comes from endowments, pension plans and the like and half from retail investors. In Asia “it would be 90% to 95% retail.”
-Institutional Investors-
Posted by su at February 9, 2006 4:55 PM