About 20% of Asia Hedge Funds Shut Since January 2008

By Bei Hu and Tomoko Yamazaki

April 27 (Bloomberg) -- Almost 20 percent of Asia-Pacific hedge funds closed in the 15 months to March, with the rate set to accelerate as rising operating costs hit smaller managers, according to London-based AsiaHedge magazine.

In 2008, 129 funds were shuttered in the region, the most in at least eight years and more than double the number in 2007, according to a statement from the magazine, which tracks more than 1,000 hedge funds. Another 17 closed in the first quarter.

“Many of the smaller shops we see closing today started life on a shoestring budget and lacked staying power in the area of operating capital,” said Ed Rogers, chief executive officer of Rogers Investment Advisors Y.K., a Tokyo-based hedge-fund advisory firm. “It is unfortunate, but not surprising, to see these funds being forced to close not because of poor performance, but because of poor business planning.” (more)