Hedge funds in Asia
Hedge funds are investing in to limited investment businesses in Asia to help them increase working capital. Following the world financial problems businesses all over Asia had to deal with unpredictable and erratic behavioural patterns and trends in Asian markets which in turn made it very difficult for businesses to trust smaller agencies with their money.Approximately eighty percent of new investments have been injected in to hedge funds in Asia and its estimated that five billion dollars has been spread out in fifteen months before the third month of this year. Out of just over three hundred and eight hedge funds which were started in two thousand and nine, just under seventy five percent of them haven’t made the gains from their assets which they were predicted to make.
Fifty one of these have been liquidated showing you the instability of the markets. As Asia’s economy started to grow rapidly it was a wonderful time for investment, people from all over the continent began to start more hedge funds to try and optimise on the new money which was flowing through and being spent. However, during the previous economic problems which the globe faced within the last 4 years investors became pessimistic, some of the events included the build ups to the Euro Zone crisis, the reduction of growth in the American financial situation and reduction in growth for China. Break even levels for new businesses and investment ventures increased and therefore management and administration of budgets had been key elements to watch out for. Asian investors are now looking for more reputable and bigger management companies to invest in. Statistics show that an alarming seven hundred and seventy five hedge funds were terminated last year across the world which is four percent more than the figure in 2010.