There is huge performance dispersion between strategies in Asia hedge funds, according to research by GFIA, the Singapore based specialist in skill-based managers in Asian and emerging markets.

GFIA reviewed the performance of emerging markets hedge funds in 2008 and 2009, and found that Asia hedge funds not only outperformed benchmark indices, but with a much lower volatility.

It also found that there is huge performance dispersion between strategies within the Asiahedge Composite index.
 
However, the big differentiator was the underlying asset class: equities or other assets.

Peter Douglas, principal of GFIA, says: “The Asian hedge fund industry is now very broadly based, and allocators can construct a wide range of risk/return profiles by combining strategies. Given the shape of Asian capital markets, however, the biggest determinant of performance is the amount of, and approach to, equities.”