From launch to longevity: Building the right technology foundation for start-up hedge funds
In today’s competitive Asia-Pacific market, the right technology foundation is critical for start-up hedge funds to scale, adapt, and win investor trust.
The $198.4 billion Asia-Pacific hedge fund industry is thriving, but new launches are still under pressure. To stand any chance of winning institutional mandates in today’s ultra-competitive market, start-up hedge funds must ensure their technology stacks are robust and future ready.
After capitalising on volatility, China’s macro uncertainty, and opportunities in artificial intelligence, Asia-Pacific hedge funds delivered average returns of 12.1% in 2024 – their strongest performance since 2009.
The results have reignited investor interest. According to BNP Paribas’ Capital Introductions Group, more than a quarter of allocators — overseeing $1.4 trillion in hedge fund assets — plan to increase allocations to Asia-Pacific strategies. That’s a sharp jump from just 2% in 2023.
Yet new launches still face formidable headwinds. Institutional flows continue to favour established managers, as many allocators remain reluctant to take career-defining risks on smaller funds. Fundraising is still possible, but the bar is higher. With investor demand outpaced by fund supply, allocators are digging deeper in due diligence and demanding more than performance alone. Robust and scalable technology infrastructure is now a critical factor in manager selection. Successful start-ups treat technology with the same rigor as investment strategy. Four key decisions often determine whether a manager scales or stalls. Read the full article here.
