Emerging market hedge fund capital is nearing $200 billion after a period of strong performance.
Assets under management reached $199.7 billion (€186.8 billion) at the end of the third quarter (Q3).
This increase in assets comes despite investor outflows of $850 million during Q3 as investors took profits after the HFRI Emerging Markets index increased by 5.06%. The emerging market index is up 9.1% year-to-date.
Gains were led by regional exposures to Latin America, Russia and emerging Asia.
Hedge funds focused on Latin America extended their “impressive” year-to-date run, leading all areas of hedge fund performance through October, said HFR. The Latin America HFR index was up 5.4% in October, bringing total gains this year to 33%.
“Emerging market hedge fund capital increased to a record level in Q3 as currency, fixed income and commodity markets adjusted to the impacts of shifting trade and monetary policies from both Brexit and the US election,” stated Kenneth Heinz, president of HFR.
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