The Baring Asia Hedge Select Fund marked its third year of existence this quarter since the fund’s launch in 2003.
The fund was launched in response to market demand from unhappy investors who disapproved of investment strategies that exposed portfolios to excessive market volatility, according to the Baring Asia Hedge Select Fund.
“Many investors who had chosen the long only route had been disappointed in the 1990s with Asian returns and suffered ‘big dipper’ swings in performance and market timing frustrations,” says Tom Maier, manager of the Baring Asia Hedge Select Fund. “Our fund was designed to provide better capital protection of our clients’ portfolios rather than simply tracking a volatile and inappropriate market capitalization weighted benchmark.”
Although Barings remains positive in its long-term outlook for Asia, especially with the emergence of China as an essential factor in global manufacturing, Maier does warn against some increased short-term vulnerability in the markets.