The managing director of a Hong Kong 'boutique' fund manager believes half the specialist managers in Hong Kong are threatened with closure or merger.
Value Partners managing director Cheah Cheng-hye said the companies' high concentration of assets in the region's markets had jeopardised their future.
Mr Cheah, who manages assets of about US$140 million, said his company was trading well within the safety level, but he believed many of the estimated 25 specialist companies were struggling.
The companies under threat typically employ less than 15, have one fund manager of note and less than $200 million under management.
Some of the single-product groups have less than $20 million.
Most of the groups generate their income from a combination of annual and initial charges, with some imposing performance-related fees.
Problems have arisen because a high concentration in Asian stocks has resulted in net asset values tumbling by up to 60 per cent.
