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How Japan Became a Hedge Fund Wasteland

  • Industry booms in Hong Kong, Singapore while Tokyo stagnates
  • Japan asset managers seen boosting allocations to hedge funds
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Japan Seen as a Waste for Hedge Funds

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Demand for hedge funds is about to skyrocket in Japan, but don’t expect supply to follow suit.

So says Ed Rogers, head of Rogers Investment Advisors, who kept his business alive in Tokyo when the financial crisis forced many of his peers to shut down. Negative interest rates are set to accelerate flows into alternative investments as giant institutions such as the $1.3 trillion Government Pension Investment Fund and the Japan Post companies seek higher returns. The problem, according to Rogers, is that anyone starting a hedge fund to win a slice of those assets would be crazy to do so in Japan.