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June 6, 2006
For HFs, it’s location, location, location
What they say about real estate appears to apply to foreign hedge funds: It’s all about location.
A recent Greenwich Associates/Global Custodian study found that European hedge funds are twice as likely as U.S. HFs to invest in Asia for a simple reason: “From a time zone perspective, it’s much easier to do business in Asia from London than from New York,” according to Greenwich consultant John Colon.
The survey bears out that assertion: 50% of Euro hedge funds invest in Japan and 40% in the rest of Asia, while only about 28% of U.S. hedge funds invest in Japan and Asia. It almost goes without saying, then, that European hedge funds are more aggressive investors in central and eastern Europe, with 25% doing so, while an estimated 17% of U.S. funds are in the region.
The Europeans are out ahead even in regions closer to these shores, with 16% investing in Latin America, compared to only 10% of their American peers.
-Institutional Investor-
Posted by su at June 6, 2006 9:05 AM