Asia Hedge Funds Brace for Lean Times as Investors Stay Away
Asia-based hedge funds are bracing for a lean quarter of capital raising as the spread of the coronavirus leads to the postponement and cancellation of key events that have historically drawn Western investors to the region.
London-headquartered Albourne Partners Ltd., a consultancy that advises pensions, university endowments and foundations that invest a combined $550 billion in alternative investments, including hedge funds, said it’s seen at least 10 of its clients cancel trips to Asia in coming weeks, according to Asia head Richard Johnston. Investors are scuppering visits as the number of new cases and deaths from the coronavirus outbreak in China surges.
The U.S. has restricted travel to China and raised the alert level for Hong Kong, the largest hedge fund hub in Asia. “You’ll hardly see a visitor at least until well into April,” Johnston said. “There’s a big issue for a lot of people, which has caused a holdup in allocations.”
Late February and March are among the peak months for international allocators to visit the region. They typically anchor trips around a few key events organized by investment banks and large asset managers, and schedule meetings with smaller firms on the side while they’re in town.
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