Wednesday, 29 March 2017
Last updated 1 hour ago
May 30 2012 | 12:13pm ET
Emerging markets hedge funds are off and running in 2012, gaining 7.3% in the first quarter, says Hedge Fund Research.
The gains represent emerging market funds’ best start to a calendar year since 2006, according to the latest HFR Emerging Markets Industry Report.
Total capital invested in emerging markets hedge funds hit a record $127.3 billion as of the end of Q1 2012, up by nearly $10 billion since the end of 2011. The previous AUM record—$123 billion—was set in Q2 2011.
The increase in capital was driven by performance-based gains, as net new capital flows from investors remained muted, with funds experiencing inflows totaling $3.1 billion, while those experiencing outflows totaled $3.4 billion, resulting in a modest net outflow of $365 million in the first quarter.
New capital flows were concentrated in emerging Asia and Russia/Eastern Europe, which received $500 million in net new capital combined.