Hong Kong’s hedge fund industry registered its largest quarterly outflow since the global financial crisis a decade ago, attributed primarily to small and medium-sized players.
Net redemptions totaled $1 billion in the three months ended September, according to data compiled by Eurekahedge – the largest single quarter outflow since the second quarter of 2009. Small and medium-sized hedge fund managing $500 million or less accounted for the majority of the outflows.
Whilst Hong Kong’s anti-government protests have undoubtedly hit investor sentiment, the report noted that the outflows were in line with ongoing redemption trends driven by poor returns. Barring major deterioration to the environment, a positive outlook remains for Hong Kong’s hedge fund market due to their ability to access Chinese onshore markets.
Hong Kong’s broader hedge fund market continued to grow this year, with assets under management totaling $92 billion as of August, attributable to positive market returns, especially from larger funds.
