Citigroup is forming a joint venture with Pacific Alternative asset management Co. to offer hedge-fund portfolio management services to its wealthiest clients.

Pequot Capital Management Inc., a U.S. hedge fund with more than $6 billion under management, is coming to Asia, another sign that large, savvy investors are shifting capital out of the U.S. and Europe and into one of the world's fastest-growing regions.

As the Industries goes through its growing stage , we see the shift from the U.S. to Asia..The Arb and IPO trading game has been the real bread and butter of Hedge funds . 8000 funds now fight for the same plays, where just a few years back there were a few hundred, Funds are heading West .

In action Yesterday:

Wall Street overcame early losses to end in positive territory on Tuesday, after the US Treasury called on
China to take steps toward revaluing its currency.

US stocks had lagged for much of the day as a string of mixed reports about the state of the US economy overshadowed solid results from several big-name retailers. But by the close, the Dow Jones Industrial Average was up 0.8 per cent to 10,331.88. The S&P 500 rose 0.7 per cent to 1,173.80, and the Nasdaq Composite rose 0.5 per cent to 2,004.15.

The leading indices surged after John Snow, the Treasury secretary, called for China to take an intermediate step toward revaluing its currency. Mr Snow added, however, that the US was not calling for an immediate full float of the renminbi.