Merryn's Blog

Making money in Asia is harder than it looks

The experience of one London-based hedge fund shows that making money in Asia isn't as easy as everyone likes to think.

Thanks to Jonathan Allum of Mizuho for pointing to the two quotes below. Perhaps making money in Asia, and for that matter from hedge funds, isn't as easy these days as the consensus likes to think? RAB's Pi Asia Fund had a mere $35m in it when it closed not enough to cover its costs and not enough to justify its existence. Hence its closure.

"RAB Capital Plc, the hedge fund manager best known for its natural resources investments, may double Asian assets to $2 billion within a year, said Rod Barker, director of business development and distribution. London-based RAB, whose shares trade on London's Alternative Investment Market, is opening its first overseas office in Hong Kong today. It's made two acquisitions in Asia in the past year. Barker said the company doesn't rule out additional purchases". From Bloomberg, 23/10/2007 "RAB Capital Plc, the London-based hedge-fund manager has shut its remaining Asia-focused fund, said five people with knowledge of the matter RAB decided to pull the plug on the Pi fund because its revenue could no longer offset costs after losing assets, two of the people said. The Pi team oversaw less than $35 million in the Asia fund when it closed, they added The closure of RAB-Pi Asia Fund Ltd. leaves RAB, which opened its first overseas office in Hong Kong in 2007, with no Asia-focused fund at present, said the people RAB's assets under management fell to $1.05 billion by Aug. 31 from the end of 2007 peak of $7.2 billion, according to company statements". From Bloomberg, today

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