Assets under management by Hong Kong hedge funds have exceeded their pre-financial crisis peak thanks to strong growth in the past two years.
As of September 30, 2014, there was $121 billion under management by 778 hedge funds in Hong Kong, according to the latest survey of licensed hedge fund managers by the Securities and Futures Commission (SFC), the Hong Kong regulator.
The figures reflect a decline in the average fund size since March 2008, the previous peak, when the SFC identified $90 billion under management by 488 funds.
The Asia-Pacific region, including Australia and New Zealand, today accounts for 64% of Hong Kong hedge fund allocations, according to the survey, about half of which is invested in Greater China.
Hong Kong hedge fund investors are mostly from the West, with the Americas accounting for 44% of assets under management and Europe for 18%.
The top 20 hedge funds by assets account for slightly more than half of overall assets, a proportion that has not changed much since 2012.
The survey went to 401 SFC-licensed firms that were identified as hedge fund managers as of September 30, 2014. The SFC says every licensed hedge fund manager participated.
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