EM Funds Proliferate, Assets Decline In Q2

Aug 23 2012 | 12:23pm ET

The number of emerging markets hedge funds reached a record high of 1,073 in Q2 2012, but their assets under management fell 3% from Q1, reports HFR.

Emerging markets funds now account for 14% of all hedge funds and manage $123.5 billion. HFR says the $3.7 billion quarter on quarter decline was primarily performance based—the HFRI Emerging Markets Total Index fell 6.05% in Q2 while investors pulled $256 million from EM funds.

Latin American funds saw the strongest gains, adding 3.9% through July while Russia/Eastern Europe funds added 2.3%. MENA funds were up 2.7% YTD through July.

The recently launched HFRX Emerging Markets Index, which includes all EM regions and hedge fund strategies, was up over 5.7% through August 17.

In terms of strategy, EM funds continue to focus predominantly on fundamental growth strategies (which account for 60% of all EM hedge fund capital) but new offerings have included funds focused on currency, fixed income and equity hedge strategies. Macro strategies (discretionary and quantitative/systematic CTA) now account for almost 13% of all EM hedge funds.

“Emerging Markets hedge funds delivered compelling performance in both an absolute and relative sense through the two distinct market cycles of the first two quarters of 2012, producing strong gains in the risk-on environment of 1Q12 and preserving those gains through the risk-off environment of the second quarter,” said Kenneth J. Heinz, president of HFR, in a statement.

 


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

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.