The emerging market hedge fund “surge” continued through April as the industry saw inflows reach new heights.
Total capital invested in emerging markets hedge funds reached an all-time high of $205.8 billion, said HFR, a hedge fund researcher.
This occurred as hedge funds investing in emerging markets saw returns of 5.63% during April, which took the return for the year so far to 22.1%. This was the strongest start to the year on record for the emerging market hedge fund world.
“Emerging markets hedge funds have led industry performance through geopolitical uncertainly which has defined early 2017, including falling commodity prices, expectations for higher interest rates, US dollar strength, and increased risk of terrorism and military escalation,” said Kenneth J. Heinz, president of HFR.
He added: “EM hedge funds have effectively adapted to these increased risks, as well as trade uncertainty associated with the Trump administration and European elections.”
HFR recently said total hedge fund assets globally had increased to $3.07 trillion at the end of Q1.
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