SMU Professor of Finance Melvyn Teo finds the enigmatic nature of hedge funds interesting. He is best known for his work on the geography of hedge funds. By analysing the different performances by funds invested in Asia from Asia, versus funds invested in Asia from locations further afield like the United States and United Kingdom, he found that hedge funds with a physical presence (head or research office) in their investment region outperformed other hedge funds by 3.72 per cent per year. While the local information advantage was pervasive across all major geographical regions, it was strongest for emerging market funds and funds holding illiquid (that is, not easily converted into cash) securities.