Global hedge funds are looking to further expand in Asia over the next few years – and expand they will. A Barclays survey states that as much as $70 billion is available.
Due to the increase in sovereign-wealth funds, as well as the private wealth throughout Asia, have opened the door for managers to invest.
Currently, Asian investors account for approximately $150 billion in global hedge funds. This is just over five percent of the total amount invested in global hedge funds.
Hedge fund managers are targeting corporate pensions in Japan, which are seeking alternative investments. Also, Korean institutional investors are seen as likely suitors to jump into global hedge funds.
David Bennett, the head of capital solutions at Barclays, said that managers in North America believe there is a pot of gold in Asia that has yet to be uncovered.
“There is definitely a lot of potential here in terms of raising assets,” Bennett said. “Realizing that potential is a very different matter.”