Asia’s hedge fund market is evolving, with diversification beyond long/short equity into multi-strategy and quantitative approaches, particularly in Japan. The adoption of separately managed accounts (SMAs) is rising, offering investors greater customization, risk control, and transparency. 

Allocators are increasingly partnering with emerging managers early, securing better terms and gaining specialized market insights. Transparency and authenticity are becoming crucial, as investors seek managers who openly share their strategies, risks, and past performance. 

Japan remains a key focus, while sectors like artificial intelligence and semiconductors present new investment opportunities. 

Finsum: Despite these trends, raising capital remains challenging for emerging managers, who must establish strong infrastructure and a compelling value proposition to attract investors.