Hedge Fund Reader : Indian Hedge Fund Industry looking attractive

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August 20, 2005

Indian Hedge Fund Industry looking attractive

India seems to be a hot favorite with the hedge fund industry these days. China, the other Asian country in fray is also some what liked by the fund managers these days. India, however is being preferred due to more number of opportunities in the region. The market is still quite full of inefficiencies which provide a fertile ground for the hedge fund managers to make profits. China on the contrary is not providing that many opportunities. And Europe and North America have been experiencing a very stable market with low volatility thereby providing fewer opportunities for fund managers aiming to make profits by identifying market inefficiencies. Recent revaluation of the yuan by china may be seen as an attempt to attract foreigners for investments but the industry is a little guarded in its approach in the country. The development of the derivatives market in India is another reason for the European and American fund managers to look at the market seriously. Hedgeco.com reports:

"But China is also embarking on measures to open up its investment arena to more international asset managers. The recent Yuan currency reevaluation by the Chinese authorities may be a positive step in that direction."

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August 20, 2005 in Emerging Markets | Permalink