Smaller Hedge Funds Turn to Individuals for Investments

November 15, 2011 James Heinsman Hedge Fund News

Asia-Pacific hedge funds with less than $100 million in assets are turning to millionaires for investments. These funds are having trouble as institutions generally favor funds with more impressive assets and proven track records.

The debt crisis in Europe and the worldwide economic issues have boosted volatility on equity markets to a two-year high, increasing hedge funds’ importance to investors. Smaller funds are held up by wealthy individuals and family offices, while pension funds and other large institutions focus on hedge funds who manage more than $100 million.

“It is always hard to raise money for new startup hedge funds, but it is generally easier from family offices and private wealth,” explained Zehn Liu of Guangzhou’s E Fund Management. “They are more performance driven and more willing to try out new and novel strategies and managers.”

Asia Pacific Finance, Economy, Europe Debt Crisis, Hedge Fund Investments, Hedge Funds,

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