S Korea\'s hedge fund industry grows sevenfold

S. Korea\'s hedge fund industry has grown sevenfold over the past year since the so-called Korea-style hedge fund was introduced in December 2011, the financial regulator said Thursday. Assets managed by homegrown hedge funds reached 1,017.5 billion won (940 million U.S. dollars) in November, sevenfold from 149 billion won in December last year, according to the Financial Services Commission (FSC). The number of hedge funds rose to 19 last month from 12 in December 2011 when those homegrown hedge funds were licensed for the first time in the country\'s history. The regulator said that most hedge funds picked long/short equity as a major management tool, but it noted that local asset managers have been preparing to launch various type of funds that adopt various management strategies such as arbitrage and event- driven. The long/short equity is an investment strategy of buying stocks that are expected to rise in value together with selling stocks that are projected to fall in value. The FSC noted that institutional investors such as pension funds will have a great interest in investment into the homegrown hedge funds as the hedge funds can serve as an alternative investment that offer higher investment return amid the protracted trend of low interest rate.