Asia Hedge Fund Losses Increase In Q3, Set For Worst Year Since 2008
NDTV
The extended losses came as Asian markets faced mounting headwinds from hawkish Federal Reserve rate hikes and uncertainties surrounding the once-in-five-years China's Communist Party Congress.
Hedge funds focused on emerging Asia posted their biggest monthly losses in years in September and are set for the worst year since the 2008 financial crisis, data provider HFR said.
The firm's HFRI Asia ex-Japan Index slumped 7.7% in September, the worst single month performance since March 2020, HFR data showed on Oct. 17. Third quarter performance was a negative 10.4%, compared with a 4% drop in the second quarter.
The extended losses came as Asian markets faced mounting headwinds from hawkish Federal Reserve rate hikes, uncertainties surrounding the once-in-five-years China's Communist Party Congress, and rising Sino-China tensions over Taiwan and tech.
"It's a very painful third quarter for (Asia) hedge fund managers' performance. The managers are monitoring the 20th Party Congress to have some clarity on China-related investments," said Benjamin Low, senior investment director of Cambridge Associates.
