According to a study by SMU Professor of Finance Melvyn Teo, firms that launch many funds tend to underperform other firms by between 3 to 5 percent per year after adjusting for risk. This study was quoted along with Doric Capital Corp, one of Hong Kong's oldest hedge fund firms, to shut its decade-old Asia ex-Japan long/short equity fund and focus on managing its small-cap strategy. Launched in October 2001, the flagship Doric Focus Fund closed in January following a 28% loss in 2011 and assets were down to about $25 million from a peak of just over $350 million in 2006. Professor Teo is also the Director of the BNP Paribas Hedge Fund Centre at SMU.
Reuters