Hedgies focusing on Asia ex-Japan must be popping champagne right now.
According to the latest Eurekahedge report, their assets under management rose to a record high of $159.8 billion as of end-May, up $15.4 billion at the start of the year.
Asia ex-Japan hedge funds also posted a 15% return in the first five months of the year, besting the global industry’s 4.37% gain.
Surging stocks in the region, particularly in China and Hong Kong, contributed to the hedgies’ stellar returns and strong fund inflows.
For the month of May alone, Asia ex-Japan rose 1.8%, with Greater China contributing most of the gains, just behind Japan, which was up 2.05%, Eurekahedge said. The index for Greater China posted a 3.36% gain in May.
Last month, the Nikkei 225 index and the Topix rose 5.34% and 5.08%, respectively. The Shanghai Composite Index jumped 16.42% and Shenzhen soared 31.5%.
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