A Massive Hedge Fund Now Closes As US Investors Retreat
New Silk Road Investment Pte, one of Singapore’s longest-standing hedge funds, is shutting down after 16 years of operation, driven by a combination of weak performance, a significant withdrawal of U.S. institutional capital, and the founders’ decision to step back.
The fund, which once managed nearly $2 billion at its peak in 2021, saw its assets under management drop to $615 million by December 2024, according to a report by Bloomberg.
Founded in 2009 by Yik Luen Hoong, former head of Hong Kong-China equity products at Deutsche Bank, and Raymond Goh, ex-head of Asian equities at GIC, New Silk Road was a pioneer in Singapore’s hedge fund industry, according to Bloomberg.
At the time of its inception, Singapore’s hedge fund market managed just S$59 billion, a figure that has grown to S$327 billion by December 2024, per data from the Monetary Authority of Singapore.
The fund was among the first foreign investors to gain access to China’s onshore markets, securing a Qualified Foreign Institutional Investor (QFII) license in 2012, when fewer than 200 firms held such approvals from the China Securities Regulatory Commission.
Per industry reports, New Silk Road built its reputation on deep fundamental research and a value-oriented, long-term investment strategy, with a focus on Asian equities, particularly in China.
The firm maintained a team in Shanghai and was an early player in accessing yuan-denominated stocks and bonds.
However, its performance faltered in recent years, with its flagship Asia Landmark Fund and China Fund posting losses in three of the past five years.
The Hedge Fund’s Fall
In 2022, these funds declined by 28% and 19%, mirroring a 22% drop in China’s CSI 300 Index during the same period.
The fund’s challenges were compounded by a broader retreat of U.S. institutional investors from Asian markets, driven in part by geopolitical tensions.
“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,” said co-founder Yik Luen Hoong in an email to Bloomberg.
This pullback, coupled with a market environment that increasingly disfavored long-term value investing, made it difficult for the fund to maintain its footing.
In response to these pressures, New Silk Road began scaling back operations earlier in 2025, closing its Southeast Asia-focused fund and reducing staff in its Shanghai office.
While the exact number of job losses remains unclear, the firm is now in the process of returning all remaining capital to investors and winding down its vehicles.
Hoong emphasized that the closure was not due to financial distress but rather a strategic decision influenced by market shifts and personal considerations.
Both founders, now in their 60s, cited their age and the lack of ready successors as factors in their decision to “hang up our boots.”
“We are just one of many active value funds in Asia that have not been the favor of the time,” Hoong told Bloomberg.
“The market has changed in such a way that it disfavors longer-term fundamental investing approaches with a value bias.”
He added that Singapore remains a successful hub for hedge funds, despite the challenges faced by smaller firms like New Silk Road in an increasingly competitive landscape dominated by larger, multi-strategy players.
The closure reflects broader difficulties for smaller hedge funds globally, as turbulent markets, geopolitical risks, and the dominance of mega-managers with diversified investment platforms continue to squeeze smaller players.
The decision marks the end of an era for New Silk Road, which played a significant role in establishing Singapore as a hub for hedge fund activity in Asia.
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