Emerging Markets On Track For Lowest Inflow Since ‘00

Aug 20 2008 | 1:39pm ET

Investors are still shying away from emerging markets hedge funds, as last year’s top-performing strategy continues to suffer from poor returns.

Global emerging markets funds added $995 million in the second quarter, according to Hedge Fund Research. While that is a more than 60% increase compared to the first quarter inflow of $597 million, it is down 72% from the second quarter last year. And if inflows continue at this rate, 2008 could post the lowest inflow since 2000.

The number of emerging markets hedge funds grew by only a handful, standing at 1,061 from 1,057 three months earlier.

“While overall flows have slowed, investors continued to allocate assets to emerging markets hedge funds in the second quarter, indicating a continued belief in the long-term growth prospects for these developing economies,” Kenneth Heinz, president of HFR, said.

Among the trends uncovered by HFR is a growth in emerging markets macro strategies, as funds abandon poor-performing equity hedge strategies.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of