As reported recently by the Hedge Fund Research group, 30% of global hedge funds are, today, located in China and Hong Kong. Most of the funds in the region, however, are significantly smaller than those in the U.S., so it only makes up about 4% of the global industry’s $2.13 trillion total.
This is certainly interesting news to those in the hedge fund industry like Corey Ribotsky. As Kenneth Heinz, president of HFR said, “China will continue to emerge as the capital of the Asian hedge funds industry.”
Matthew Pecot, head of prime services at Credit Suisse in Hong Kong, “Like many investors, Asian funds were surprised by the strong stock market rally at the start of the year having come into 2012 positioned quite defensively. They have since adjusted by taking off some shorts and are now net long.”