Paamco's David Walter does not see hedge funds clamouring to establish a China presence. Meanwhile, the Hedge Fund Standards Board is expanding into Asia, reflecting the industry's development.
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With abundant capital domestically, onshore hedge funds are in no hurry to expand abroad, while mutual funds are planning launches of offshore long/short equity strategies.
Global alternatives firms are increasingly taking part in corporate private lending, entering a market previously the preserve of Asian credit and distressed specialists.
Small and start-up Asian hedge funds are struggling to stay in the game, but industry executives say there are more opportunities for them to gain a foothold and raise capital.
Institutions are taking greater interest in Asian credit hedge funds amid low interest rates, high issuance of regional credit and volatile markets.
Relative-value and credit hedge funds are seen as better bets than CTAs and macro strategies. But Dr Doom lives up to his name.