The time is right

Hedge funds were once reviled by Asian governments for their part in the economic crisis. But banks are now building up their hedge fund services, investor appetite looks strong, and the retail market beckons in Hong Kong. The Asian hedge fund sector may be about to take off. Navroz Patel reports

Five years have passed since the Asian crisis erupted, but many still point to the part played by hedge funds in the region’s economic meltdown. Several speculators – most notoriously George Soros’ global macro fund – built-up huge short currency positions that caused a devaluation of the Thai baht in June 1997, the event that precipitated the crisis. With this history, to say that hedge funds are