A few years ago, hedge funds saw tremendous opportunity in Asia. But, of course, the industry is now in a funk. In some cases, hedge funds are just trying to survive.
One of the major hedge funds that moved into Asia is GSO Capital Partners LP. The fund, which is an affiliate of the Blackstone Group (NYSE: BX), has about $25 billion in assets.
This week GSO is apparently pulling the plug on its Asia investment desk after only about five months in operation. Simply put, there aren't many bargains in the market.
Keep in mind that GSO focuses on distressed investments, and for the most part, Asia has fared relatively well.
Instead, the wreckage is mostly in the U.S. and Europe.
In a way, this is a negative thing, but there is a silver lining: the "smart money" sees good deals in the US. Ultimately, with more money coming into these investments, it could spark the beginnings of a comeback, especially in the debt markets.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
1-14-2009 @ 12:52PM
BHarrison said...
Our government and society, in general, are in denial that this economic melt down is, in FACT, creating or causing major economic and social shifts in our society.
Many who "lived the goodlife" off of excessive and abusive use of credit, are going to be decimated and no longer able to maintain their old phony standards of living that thaey really could not afford. And the "trickle down" (really flood gate) impact is that many otherwise "innocent" americans (retirees, etc.) are also being unduly negatively impacted.
The social/economic changes are inevitable; all of this phony "bailout" efforts are only helping the special interests groups (FIs, corporations, and makrets) that created the economic melt downs via pyramid and Ponzi schemes and other FRAUDS (like "off-the-books 'assets'", derivatives, etc.).
We are now going through a long and drawn out process that is really not going to help the VAST MAJORITY of the "average Americans" who lived beyond their means. These people will just have to suffer the consequences of their foolishly irresponsible financial actions. Now, too many otherwise "innocent" individuals have been defrauded and negatively impacted by all of this.
They can try to deny it; but there WILL be massive inevitable economic and social changes fro MILLIONS of Americans . . . this is simply unavoidable.
. . . and the corrupt CEOs, CFOs and other corporate management who orchestrated and perpetuated the blatant FRAUDS are still being allowed to collect unconscionably excessive and exorbitant salaries, bonuses, and "other copensations". These CRIMINALS should be indicted and prosecuted to the fullest extent of the Law for the FRAUDS that they have perpetuated.