Singapore's New Silk Road Fund Closure Signals Shifting Asian Investment Landscape
One of Singapore's pioneering hedge funds, New Silk Road Investment, announces closure after 16 years of operations. The shutdown reflects broader challenges in Asian markets, particularly the declining U.S. institutional interest and China's market turbulence, while highlighting Singapore's resilience as a financial hub.
Singapore's financial district skyline, home to New Silk Road Investment's operations for 16 years
End of an Era: Pioneer Singapore Hedge Fund Winds Down
In a significant development that underscores the evolving dynamics of Asian financial markets, New Silk Road Investment, one of Singapore's longest-running hedge funds, has announced its closure after a 16-year journey. The firm's assets under management experienced a dramatic decline from US$2 billion in 2021 to US$615 million by December 2024.
Market Challenges and Strategic Shifts
The closure reflects broader challenges facing Asian investment markets, particularly the declining enthusiasm from U.S. institutional investors. Co-founder Hoong Yik Luen highlighted the changing landscape:
"Our traditional source of funding from the U.S. institutions had over the last several years been less enthusiastic about liquid equity investments in Asia, in no small part due to geopolitical reasons."
Singapore's Financial Evolution
The story of New Silk Road Investment parallels Singapore's remarkable growth as a financial hub. When the fund launched in 2009, Singapore's total hedge fund market managed just S$59 billion. Today, that figure has grown impressively to S$327 billion, demonstrating the city-state's successful transformation into a global financial powerhouse.
China Strategy: From Pioneer to Challenge
The fund's journey in China markets is particularly telling. As one of the early foreign investors with QFII status, New Silk Road witnessed both the rise and recent struggles of Chinese markets. Recent performance reflected these challenges:
- Negative returns in three of the past five years
- 28% decline in the Asia Landmark Fund (2022)
- 19% drop in the China Fund (2022)
Graceful Exit Amid Market Evolution
Despite the challenges, the closure represents a strategic choice rather than a forced exit. As Hoong emphasized, Singapore remains a thriving hedge fund hub, but market conditions have shifted away from traditional value-investing approaches.
The firm's orderly wind-down, including earlier restructuring efforts in 2025, demonstrates the maturity and resilience of Singapore's financial ecosystem, even as individual players adapt to changing market dynamics.
Wei-Ling Tan
Tech and economy specialist, covering innovation in Southeast Asia from Singapore for both English-language and regional media outlets.