Report highlights top emerging markets for funds
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Hedge fund capital invested in emerging markets surged to U$223 billion at the start of the fourth quarter of 2017, a new record high.
Data from Hedge Fund Research shows that Chinese hedge funds led the gains with the HFR EM China Index surging 28.1% in October, its best performance since 2009.
“Emerging Markets hedge funds extended a strong 2017 into the fourth quarter, as accelerating global trade, restrained inflationary pressures and moderating geopolitical tensions drove gains across regional EM equity markets,” stated Kenneth J. Heinz, President of HFR.
There were double-digit gains for Emerging Asia (13.5%) during the first three quarters of 2017, to a total $55.2 billion; outperforming the total EM hedge fund capital increased 10.9% during that period.
Latin America is another region where hedge fund investment has shown strong gains. HFR’s index has posted a 15.5% rise YTD with total EM hedge fund capital invested in Latin America up 7.7% to $6.8%.
Russia and Eastern Europe saw total EM hedge fund capital invested rise by 4.4% to $30.6 billion. The HFR index for the region was up 8.2% having moderated from the 27% jump seen in 2016.
Investment by hedge funds in MENA was up in Q1-Q3 2017 by 6.7% to $4.9 billion with the HFR index for the region up 4.7% YTD.
“Chinese hedge funds have continued to demonstrate strong outperformance of regional equities through security selection and exposure adjustment, while MENA focused funds continue to navigate regional volatility associated with unpredictable political and commodity adjustments. EM hedge fund performance and growth leadership is likely to extend into 2018 as these trends continue,” added Heinz.
Data from Hedge Fund Research shows that Chinese hedge funds led the gains with the HFR EM China Index surging 28.1% in October, its best performance since 2009.
“Emerging Markets hedge funds extended a strong 2017 into the fourth quarter, as accelerating global trade, restrained inflationary pressures and moderating geopolitical tensions drove gains across regional EM equity markets,” stated Kenneth J. Heinz, President of HFR.
There were double-digit gains for Emerging Asia (13.5%) during the first three quarters of 2017, to a total $55.2 billion; outperforming the total EM hedge fund capital increased 10.9% during that period.
Latin America is another region where hedge fund investment has shown strong gains. HFR’s index has posted a 15.5% rise YTD with total EM hedge fund capital invested in Latin America up 7.7% to $6.8%.
Russia and Eastern Europe saw total EM hedge fund capital invested rise by 4.4% to $30.6 billion. The HFR index for the region was up 8.2% having moderated from the 27% jump seen in 2016.
Investment by hedge funds in MENA was up in Q1-Q3 2017 by 6.7% to $4.9 billion with the HFR index for the region up 4.7% YTD.
“Chinese hedge funds have continued to demonstrate strong outperformance of regional equities through security selection and exposure adjustment, while MENA focused funds continue to navigate regional volatility associated with unpredictable political and commodity adjustments. EM hedge fund performance and growth leadership is likely to extend into 2018 as these trends continue,” added Heinz.
