Japan hedge funds grow while region shrinks
Funds raise cash even after Aug. 5 market crash
Rising rates to benefit longshort funds managers

HONG KONG, Sept 9 Reuters Japan has emerged as a standout in Asia39;s subdued 400 billion hedge fund sector, drawing fund launches while other regions suffer closures in an indicator that wild volatility in August has not derailed a revival in Japanese capital markets.

Hedge fund liquidations in Asia have outpaced new launches since 2023 mostly due to China39;s faltering stock market.

However, the number of Japanfocused funds saw a net increase of more than 10 during this period, Preqin data shows.

At least a further five Japanfocused funds have launched or are preparing to debut in the third and fourth quarters of the year, spanning strategies equity longshort to quantitative, according to funds or people familiar with their plans.

The launches come from both home and abroad and are being well received by investors.

They point to confidence in Japan long overlooked by hedge funds and a broad swathe of other investors, and lately rattled by the biggest oneday stocks rout since 1987 and suggest its financial markets are coming back to life after decades on the periphery for many big investors.

Japan is finally changing in a positive way, with inflation and wage growth, said Soichi Utsumi, founder of Shinka Capital Management which is launching a Japan equity longshort fund.

I39;ve never seen such big trends in my whole…