The Asian industry has struggled to recover assets lost during the global financial crisis in 2008 as investors have become more risk-reverse and prefer large managers. Hedge funds focused on the region oversaw a combined $139 billion at the end of last year, 27 percent less than the end-2007 level, according to AsiaHedge data. Globally, assets hit a record $2.4 trillion by March, 27 percent above the 2007 figure, according to Chicago-based data provider Hedge Fund Research Inc.
This was the first time the New York-based bank has had to move the event out of the region since it began hosting it in the communist country in 2005, said one of the people. In most years it took place in Shanghai, home to the country’s largest stock exchange, except on two occasions when it was held in Beijing and in Hong Kong, the person said. About 60 Asia-focused hedge funds are typically featured at the Morgan Stanley conference, said the person.
Morgan Stanley was the second-largest prime broker in Asia- Pacific region this year by the 151 sole and shared mandates it received from hedge funds, or 13 percent of industry total, according to a survey by AsiaHedge released earlier this month.
The trade journal estimated that it commanded $21.3 billion of client assets, a 14 percent share, placing the bank in the third place behind Goldman Sachs Group Inc. and Credit Suisse Group AG.
Capital introductions teams at prime brokers link hedge funds with potential investors.