2021 was an extraordinary year in Asia, with restrictions on movement and pandemic health concerns a major influence on life. Despite the pandemic, Asia-Pacific hedge funds returned annualized performance of 12%, down from 18% a year previously. In-flows into Asia-Pacific hedge funds were positive in 2021 ($13bn) and launches exceeded liquidations by around 2:11 .
Looking to 2022, according to Preqin late last year, COVID-19, rising interest rates and inflation, market volatility, competition for assets and valuations were the greatest concerns of investors. The effect of the war in Ukraine and spiraling fuel costs is dramatically affecting nervous markets.
There has been recent tailing off in performance in the US markets and we predict, that despite significant challenges in China (restrictions on tech and crypto and credit default concerns), overall the Asia Pacific region will see higher in-flows to hedge fund strategies, with investors increasing their allocations to Asia and hedge. We have many new mandates for fund launches, with crypto focused funds particularly gaining popularity.
Footnote
1 2022 Preqin Global Hedge Fund Report
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