The top 25 Asia-based funds now manage $22.6bn in assets, signalling a growing shift in the hedge fund industry towards emerging Asian markets as well as Japan.

The figures come from Institutional Investor’s Alpha, which will today release its inaugural ranking of the 25 largest hedge funds based in Asia. The largest Asian fund was Tokyo-based Sparx Asset Management, which had $5.2bn in assets at the end of 2005. PMA Capital ranked second with $2.1bn – Sparx acquired the Hong Kong-based firm last month. Rounding out the top five are Appleby’s ADM, Ward Ferry and Penta, three Hong Kong firms with $1.44bn, $1.40bn and $925m respectively, at the end of 2005.