Tomahawk, WI 9/19/2013 (BasicsMedia) – Goldman Sachs Group Inc (NYSE:GS) has plans of introducing or launching an Asian hedge fund. Normally, such news would be considered priority, but the fact that it is still a guarded secret has somehow helped to keep it under wraps, at least for now. There are merits in GS taking such a step considering that Asia’s economy continues to outperform that of both the U.S and Europe.  A number of investors are now flooding into Asia as a result of the positive economic group being experienced in Asia. Does this justify GS’ move on Asia hedge fund?

 Asian Hedge Funds Attract Bring More Revenue

 Asian funds have now jumped up to $98.4 billion as a result of the positive developments which have been taking place with regard to its economy. Asia might be growing at a slower pace than what might have been expected, but it still remains one of the fastest growing economies in the world. As stated earlier, it has continued to outperform major global economies such as the U.S and Europe. This has been the oil which fuels the kind of interest in launches being carried out in the region. More specifically, China and Japan appear to be playing massive roles in this growth.

 Net inflows to the Asian hedge fund industry amounted to $3 billion. This is less than the $3.9 billion which the Asia stocks managed to attract in the same financial period. GS is not the only company with this intention. Others such as Morgan Stanley already have such plans, and will even be holding a hedge fund forum in October, 2013 in Hong Kong. This hedge fund is designed to cover Asia and will bring Australia into the fold as well. The amount of international capital being directed into some Asian powers like Japan is large by any stretch of imagination.

GS Attracted by the Intellectual Power Shift to Asia

 There has been a lot of movement of intellectual power into the Asian economy as well. This has been responsible, at least in part, to helping attract investors into this bludgeoning economy. The development has been quite good and would not have been considered a possibility some five years ago. Hedge funds are what most banks are looking to as the source of revenues due to the fact that they are fee-generating. GS, by virtue of being the fifth largest U.S bank, is only doing what is expected of it as it continues to move ahead on a path of recovery from the mess of 2008.

 Goldman’s GSIP the Largest in the World

 GS already operates Goldman Sachs Investment Partners, which owns some $7 billion, considered perhaps the largest hedge-fund start-up. Asia continues to show a lot of interest in managers who are backed with institutions of larger stature such as GS. The fact that GS already boasts of solid operations has not harmed its decision to step into Asia and start a hedge fund specifically designed for this market. Managers with the ability to generate more than what the benchmarks currently indicate, are in high demand in Asia. This is right up Goldman’s alley.

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