Quant hedge funds boom in Asia

(Nov 10): More Asian hedge funds are starting computer-driven strategies, as investors disappointed by the poor performance of some traditional funds search for better returns.

In Singapore, US$2 billion ($2.8 billion) multi-family office Thirdrock Group has launched a quant fund, and Lucerne Investment Partners is considering starting one next year. Charles Wang, a former portfolio manager at Bosera Asset Management, is about to launch a vehicle on OP Investment Management’s platform in Hong Kong, where Hantak Investment Advisors plans to next year open a version of the quantitative fund it runs out of Beijing.

“Asia has long been dominated by equity strategies,” said Will Tan, a managing director at Principle Partners in Singapore, which specializes in recruiting for hedge funds. “However, they have disappointed recently. So investors are seeking to diversify and turn to systematic trading in particular, as those investment styles have less correlation with other markets.”

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