Feature story: Banking & Finance
Hedge funds in Hong Kong
March 16, 2010: Is Hong Kong poised to become a new frontier for hedge fund managers fleeing financial uncertainty in the West?
Hedge fund managers are setting their sights on Hong Kong, but are mainland Chinese investors ready to get involved?
It is the nature of high-risk investments that there will be good times and bad times, but the ups and downs experienced by hedge funds over the past two decades have truly been a rollercoaster ride.
After taking a beating in the wake of dot com crash, hedge funds quickly rebuilt themselves, amassing an estimated US$1.5 trillion in assets by the middle of 2008. The good times, however, were not to last long. The impact of the financial crisis was grave indeed, with some funds losing as much as US$8 billion of their investors' assets.
In the wake of the crash, a very different animal has emerged. Fund managers no longer have the luxury of being able to turn investors away and they can no longer demand huge start-up capital or make high risk investments. With developed markets still struggling, they are looking for new...
It is the nature of high-risk investments that there will be good times and bad times, but the ups and downs experienced by hedge funds over the past two decades have truly been a rollercoaster ride.
After taking a beating in the wake of dot com crash, hedge funds quickly rebuilt themselves, amassing an estimated US$1.5 trillion in assets by the middle of 2008. The good times, however, were not to last long. The impact of the financial crisis was grave indeed, with some funds losing as much as US$8 billion of their investors' assets.
In the wake of the crash, a very different animal has emerged. Fund managers no longer have the luxury of being able to turn investors away and they can no longer demand huge start-up capital or make high risk investments. With developed markets still struggling, they are looking for new...
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