Asia's Hedge Fund Top Performers
"I think it is an immutable law in business that words are words, explanations are explanations, promises are promises - but only performance is reality."
Harold Geneen, b.1910
former chief executive, International Telephone & Telegraph Company
With little more than 50 days into 2007 I thought I would take a look at the performance of a small universe of managers with Asia-related strategies for clues to their future performance. Data was courtesy of a Switzerland-based private bank who gets performance estimates on a weekly basis.
Asia: 21 funds of a diversified equity strategy type with combined AUM of US$7.86 billion, avg. AUM of US$372 million. The equal weighted average performance so far is +1.13% (range of
-7.86% to 4.26%). In this universe, positive performance was achieved by 81% of funds, while positive performance over +3.0% was achieved by 24% of funds. It is worth remembering that MSCI Pacific Free Index (in US$) as of Feb 12 was +2.02%. The top three standout performers on a YTD basis were: Eastern Advisor, Hamon Oriental and Tantallon.
Japan: 34 funds of a diversified equity type (and there is overlap with Asia) with combined AUM of US$13.9 billion, avg. AUM of US$410 million. The equal weighted average performance so far is +o.67% (range of -7.29% to +6.32%). In this universe, positive performance was achieved by 59% of funds, while positive performance over +3.0% was achieved by a mere 12% of funds. The MSCI Japan Index (in US$) as of Feb 12 was +1.48%. The top three standout performers on a YTD basis were: Arcus Japan Fund (Yen), Oberon Strategic and 788 Japan Fund.
Bottom line: It is still early in the year and the Nikkei and TOPIX have been rallying firmly since Feb-12 so that performance catch up is possible. This author still contends that those investors who have remained committed to Japan, especially with managers with a defined hedge and deep research-led capability should prevail in the performance race through 1H07.
The real question for investors remains "is it beta or alpha that I am buying?" Judging from last year's performance dichotomy between Japan and Asia managers more often not investors are "buying beta". Mahalo.
"I think it is an immutable law in business that words are words, explanations are explanations, promises are promises - but only performance is reality."
Harold Geneen, b.1910
former chief executive, International Telephone & Telegraph Company
With little more than 50 days into 2007 I thought I would take a look at the performance of a small universe of managers with Asia-related strategies for clues to their future performance. Data was courtesy of a Switzerland-based private bank who gets performance estimates on a weekly basis.
Asia: 21 funds of a diversified equity strategy type with combined AUM of US$7.86 billion, avg. AUM of US$372 million. The equal weighted average performance so far is +1.13% (range of
-7.86% to 4.26%). In this universe, positive performance was achieved by 81% of funds, while positive performance over +3.0% was achieved by 24% of funds. It is worth remembering that MSCI Pacific Free Index (in US$) as of Feb 12 was +2.02%. The top three standout performers on a YTD basis were: Eastern Advisor, Hamon Oriental and Tantallon.
Japan: 34 funds of a diversified equity type (and there is overlap with Asia) with combined AUM of US$13.9 billion, avg. AUM of US$410 million. The equal weighted average performance so far is +o.67% (range of -7.29% to +6.32%). In this universe, positive performance was achieved by 59% of funds, while positive performance over +3.0% was achieved by a mere 12% of funds. The MSCI Japan Index (in US$) as of Feb 12 was +1.48%. The top three standout performers on a YTD basis were: Arcus Japan Fund (Yen), Oberon Strategic and 788 Japan Fund.
Bottom line: It is still early in the year and the Nikkei and TOPIX have been rallying firmly since Feb-12 so that performance catch up is possible. This author still contends that those investors who have remained committed to Japan, especially with managers with a defined hedge and deep research-led capability should prevail in the performance race through 1H07.
The real question for investors remains "is it beta or alpha that I am buying?" Judging from last year's performance dichotomy between Japan and Asia managers more often not investors are "buying beta". Mahalo.
posted by Franklin Scruggins | 10:36 AM
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