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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