Why Singapore’s hedge funds are outperforming their global rivals
- Hedge funds in Singapore are shining as a group, generating an average return of 9.4 per cent for clients in 2019
- On a per capita basis, Singapore is one of the wealthiest nations in the world, and it has an outsize wealth management sector
If that sounds snoozy, Chong’s returns are anything but. His Vanda Global Fund, started with US$24 million from friends and family and named after Singapore’s national orchid, is the world’s best-performing hedge fund this year, gaining more than 300 per cent.
Singapore is far from the skyscrapers of New York and The City of London, yet somehow it’s producing hedge funds that are trouncing global rivals. The city state is home to two of the top 10 in 2019, and a third is partly based in the island nation. In all of the US, there are only four, and zero in Europe or Hong Kong.
Their individual successes come at a time when many investors are questioning the wisdom of pouring large amounts of money into hedge funds because of their high fees and mediocre returns. Global outflows total US$88 billion so far this year, more than double 2018, eVestment data show.
Hedge funds in Singapore are also shining as a group, generating an average return of 9.4 per cent for clients in 2019, according to Eurekahedge Pte. That beats the 7.6 per cent return for Asia and 6 per cent return for Europe. The Eurekahedge North American Hedge Fund Index is up 7.6 per cent this year.
So why are they winning?
