Emerging Market Hedge Fund Assets Rise to a Record Despite Russian Losses (PR)
According to Hedge Fund Research, Inc, which specializes in the indexation and analysis of hedge funds, total hedge fund capital invested in emerging markets rose to $175.6 Billion, a seventh consecutive quarterly record, as inflows into Emerging Asia, Middle East and Multi-EM offset performance based asset declines in Russia and Latin America. The HFRI EM: Russia/Eastern Europe Index has fallen -9.7% YTD through April, the worst decline since the Index lost -10.5% in May 2012 with Kenneth J. Heinz, the President of HFR, commenting:
“Investors in Emerging Markets hedge funds typically have a tolerance for volatility and expectation of high returns; those investing in funds focusing on exposure to Russia and Eastern Europe categorically have the highest tolerance for volatility, which was imperative through the 1st quarter in which the political, secular and economic uncertainty associated with Russian capital markets and Ukraine reached extreme levels. Historically, sharp drawdowns in EM and Russian exposure are typically followed by strong performance recoveries. Since the May 1994 inception of the HFRI Russia/E. Europe Index has gained nearly 14 percent annualized, over 400 bps per year better than equity markets or the broad based hedge fund industry, and investors which are able to maintain or increase exposure through characteristic EM drawdowns should expect a strong recovery over the intermediate timeframe.”
To read the whole press release, Russian Hedge Funds Post Steep Losses on Ukraine Crisis, go to the website of Hedge Fund Research, Inc.
Similar Posts:
- Jupiter’s Croft: If History Repeats Itself, Russian Stocks Could Double (FE Trustnet)
- Russia Consumer Confidence Falls in Latest Nielsen Survey
- Resolving the SE Ukraine Conflict Would be a “Massive Buy Signal” for Russia (CNBC)
- Ukraine War Poses a Threat to EU Industry (RaboResearch)
- EU Slowly Weening Off Russian Crude Gives Moscow Time To Divert Flows To Asia (Zero Hedge)
- How Canaccord Genuity’s Oliver is Hedging for Iraq & Ukraine Turmoil (FE Trustnet)
- Franklin Templeton’s $7.6bn Bond Bet on the Ukraine is 6X Bigger Than its Russian Bond Holdings (EM)
- Investment Implications of the Russian Invasion (Franklin Templeton)
- Gazprombank GPB Hires Former Senators Lott and Breaux to Fight Russia Sanctions (CPI)
- Russia Ukraine War’s Global Impact (MetLife Investment Management)
- Russia Troubles Hit Emerging Markets – Including Emerging Europe (Barron’s)
- The Economic Impact of a Boycott on Russian Fossil Fuels (RaboResearch)
- Russia Promises Guaranteed Support If You Invest in the Crimea (RIA)
- Infographic: Russia’s Sphere of Influence in Context (VOX)
- Russia Moves Up 11 Places in the Global Competitiveness Report (MT)
Leave a Reply