Mizuho Financial Group Inc were said to be focusing on hedge funds as its potential buyers of corporate bonds at the height of the securities trading at below face values, Bloomberg said in its report.

Despite the discount of costs to run hedge funds in the Asian-Pacific region, Citigroup Inc's recent survey revealed that not all hedge funds in the region are successes in expanding its assets and achieving profitability.

Bloomberg columnist and money manager Barry Ritholtz said in his column on Bloomberg that the hedge fund industry is saturated with too many funds that are performing fairly and charge high fees in return for their services.

Sources disclosed to Reuters that billionaire hedge-fund manager John Paulson's strategies adopted this year for Paulson & Co saw gains in his credit, merger and Recovery funds.

Critics of the new rules requiring short-sellers to report their positions said the European Union's requirements had not made the hedge fund industry more competitive.

Recent data revealed that performance of hedge funds in the US this year was poor in comparison to the US stocks index despite massive fees demanded by money managers from its clients.

The increasing number of new hedge funds by global banks and asset managers in Asia threatened the business of smaller firms who had opened their independent firms just after the 2008 financial crisis.

A report published on Reuters said investors continue to pour in lots of money in hedge funds as they view the investment as a necessary yet expensive part in their portfolios.

A Reuters report cautioned the risks involved in investing in activist funds like Pershing Square Capital Management because just as it can earn high returns, it could also result to massive losses.

Private equity and hedge fund firms had set their sights on placing bets in infrastructure projects, stalled government transportation projects like railways and ports in particular.