Asia Ex-Japan Hedge Funds have most emerging market flows of the asset demand

Asia and hedge funds, excluding Japan, attracted the largest monthly net outflow for the first time in 2010, reflecting increased demand for emerging market assets, said Eurekahedge Pte.

Hedge funds that invest in Asia outside Japan attracted $ 860 million in capital last month, rounding off a fourth consecutive month of net subscriptions, the data provider based in Singapore, said in a report by email. The assets of hedge funds in Asia crossed 125 billion U.S. dollars for the first time since December 2008, the report said.

hedge funds in Asia are attracting investor demand for securities in the region increases the prospects for economic growth and superior performance, Eurekahedge said. The Eurekahedge Asia ex-Japan Index gained 9.4 percent this year through November, surpassing the 7.7 percent gain in the global index of hedge funds.

"The consistently impressive returns published by the Asia ex-Japan funds have recently raised the profiles of its managers to investors", Eurekahedge said. "We remain optimistic about the prospects for increasing the assets of hedge funds in the region in the future."

The International Monetary Fund predicts that Asia's developing economies will expand 9.4 percent in 2010, compared with growth of 2.7 percent in advanced countries.

North America, Europe

Hedge funds in North America also attracted capital in November, the 10th consecutive month of positive net flows of assets, the report said. The funds attracted 660 million U.S. dollars through subscriptions net last month. By contrast, European managers posted the highest net outflow of $ 1.05 billion as sovereign debt problems dominated the European continent, Eurekahedge said.

Total assets under management of the foundation of the industry at $ 1640000000000, Eurekahedge said.

In terms of performance, monitoring the extent of funds from Japan and focused gained 2.6 percent, the best performance among seven regional indices, as the benchmark Topix index rose 6.2 percent during the month . The Eurekahedge Hedge Fund Index, which tracks over 2,500 funds worldwide, added 0.4 percent.

Hedge funds are mostly private pools of capital whose managers participate substantially in profits from their speculation on whether the asset price increases or decreases.