Singapore's hedge fund industry shows signs of weakness

Hedge fund assets’ growth in 2015 slowest in three years.

Singapore’s hedge fund assets grew at the slowest pace in three years in 2015 as returns shrank and investors redeemed money.

Assets under management by Singapore hedge funds rose 11 percent to S$119 billion (U$87 billion) last year, according to the “2015 Singapore Asset Management Survey” published Thursday by the Monetary Authority of Singapore. That’s down from the 21 percent growth recorded in each of the previous two years.

Investors started to withdraw money in the region last year as a slump in China’s stock market dented returns among Asian hedge funds. The Eurekahedge Asian Hedge Fund Index gained 6.4 percent in 2015, the lowest since 2011. Withdrawals have accelerated in 2016, with investors redeeming $13.7 billion from Asia-focused hedge funds in the first eight months of this year, accounting for 12 percent of regional industry assets, according to eVestment.

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