Piquant Capital Pte is shutting its quantitative hedge fund as it failed to attract investor money after making a loss in 2014, the firm’s chief investment officer said.
The Singapore-based money manager didn’t reach its targeted US$60 million ($84.4 million) and will officially end operations at the end of the year, George Varghese said in an interview this week. He said he stopped trading in June when the fund’s assets under management were at US$20 million.
More of Asia’s smaller hedge funds are closing as volatile markets dent returns, tighter regulations increase costs and institutional investors entrust their money to bigger funds. From the beginning of 2013 through November this year, 235 Asian funds with assets of less than US$50 million ended operations, according to data provider Eurekahedge. That compares with only four with assets of more than US$500 million.
"Once you get below that super league, life is very difficult indeed," said Peter Douglas, Singapore-based principal at CAIA Association, a global group for alternative investment education. "A hedge fund under the US$50 million mark is not a viable business model, period. I can see no circumstances where it works. At that level, you’re not going to get the attention of any serious allocators."
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The Singapore-based money manager didn’t reach its targeted US$60 million ($84.4 million) and will officially end operations at the end of the year, George Varghese said in an interview this week. He said he stopped trading in June when the fund’s assets under management were at US$20 million.
More of Asia’s smaller hedge funds are closing as volatile markets dent returns, tighter regulations increase costs and institutional investors entrust their money to bigger funds. From the beginning of 2013 through November this year, 235 Asian funds with assets of less than US$50 million ended operations, according to data provider Eurekahedge. That compares with only four with assets of more than US$500 million.
"Once you get below that super league, life is very difficult indeed," said Peter Douglas, Singapore-based principal at CAIA Association, a global group for alternative investment education. "A hedge fund under the US$50 million mark is not a viable business model, period. I can see no circumstances where it works. At that level, you’re not going to get the attention of any serious allocators."
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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