Alexander Mearns, CEO of Eurekahedge, explained:  “With the current volatility in the markets there is increased demand for more manageable and predictable return streams. The Japanese pension fund industry is currently reported to have almost $100 billion invested in alternatives and inparticular is undertaking a great deal of research into this area.

“The absolute return fund industry is now back at $2 trillion and while it is much smaller than the $30 trillion mutual fund/retail fund industry it has far better annualized returns, less volatility and is growing at a faster rate. In tandem with this growth, we are seeing a strong demand from investors for liquid index linked products such as replication indices and ETFs. In addition, we expect the Mizuho-Eurekahedge Index to be the leading hedge fund index benchmark for investors worldwide.”

The NIR Group opened a new office in Singapore in 2009, appointing Shoham Cohen to head it. Asia has been a bright spot for hedge fund investors such as the NIR Group. These companies see strong economic growth and less regulation in places like Hong Kong and Singapore as an incentive to pour money into the Asian economy.  The positive characteristics in the Asian financial sphere look even better when compared to the increased regulation of hedge funds that Western countries are imposing on them in response to the financial crisis they are now experiencing.

The Eurekahedge report waxed positive on the trend they observed regarding hedge fund investments in Asia.

“The 125 Asian hedge fund launches in the first seven months of the year represent a return to the healthy growth seen before 2008,” Eurekahedge said in a report.

Many firms have jumped on to this financially booming band-wagon, including Artradis Fund Management, Man Investments, and the NIR Group, as mentioned above. Other reasons given for this movement to Asian investments are increased availability of complex financial products, less expensive costs to set-up shop in Asia compared to in the West, and the efforts made by local governments to induce global fund managers into the region.