Emerging Markets Hedge Funds Suffer $1.5B Outflow

Aug 20 2010 | 1:46pm ET

Investors yanked $1.5 billion from emerging markets hedge funds in the second quarter, even as they poured further billions into other hedge fund strategies.

The second quarter outflows are the seventh in eight quarters for emerging markets funds, according to Hedge Fund Research. Such funds now manage $9.5 billion.

“Changes in global growth expectations, prospective currency volatility and commodity-specific market influences have resulted in a near-term decrease in investor risk tolerance for emerging-market hedge fund exposure,” HFR President Kenneth Heinz said. Still, Heinz said, the strategy’s luck could change rather quickly, given trends in emerging-market stocks, sovereign debt and commodities.

“Hedge fund investors considering the tactical, cyclical and overall positive performance dynamics of emerging-market hedge funds will look to access these trends in the coming quarter,” he said.

Despite the emerging markets outflows, all told hedge funds took in $9.6 billion in the second quarter.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

New customer protection rules have landed: Are you ready?

The twin debacles of MF Global and PFG have damaged the reputation of the futures industry demanding an examination of customer protection rules. New rules are being implemented, which will add cost a...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.