Although many European investors prefer to gain some form of
exposure to their developed domestic region, Fig. 3 also shows a
significant proportion of European investors are looking to tap into
markets in Asia and other emerging markets in order to broaden
their investment focus and take advantage of growing economies
within these regions. The hedge fund industry in these developing
economies is much younger than its American or European
counterparts, but no less dynamic, and can offer some interesting
value propositions. Hedge funds in this part of the world are being
pursued by European investors seeking investment talent capable
of generating alpha in what continues to be a highly competitive
market. Many countries in Asia and Rest of World are still classic
emerging market plays, with the political interference and red tape
associated with this territory. However, at the same time hedge
fund managers based in these regions have access to the well-
regulated liquid securities markets in Australia, Japan, Hong Kong
and Singapore.