Hedge Fund Reader : Emerging Market Hedge Funds Hot

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March 28, 2006

Emerging Market Hedge Funds Hot

It has been observed as a growing trend that wealthy pension funds, endowments and other institutional investors are scouting for opportunities to invest into regions they earlier avoided. The focus for investment is found to be emerging-market hedge funds. In December 2005, the California Public Employees’ Retirement System, or Calpers, reportedly set aside US $100 million of its $206 billion, while Vision Investment Management of Hong Kong invests in hedge funds specializing in Asian emerging markets. theroyalgazette reports:

“Just about any institution you talk to wants some emerging-market hedge-fund exposure,” says Gary Kleiman of Kleiman International Consultants, a New York researcher of emerging markets.While the investments are a fraction of the funds and endowments’ overall assets, the pace of cash flowing into emerging markets is quickening. So far in 2006, investors have put more than $20 billion into a basket of emerging-market stock funds – ten percent of which are hedge funds – tracked by Emerging Portfolio Fund Research, a Boston outfit. About $20.3 billion flowed into the basket in all of 2005. Roughly 70 percent of the money it tracks comes from institutional investors, says Brad Durham, a managing director.

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March 28, 2006 in Emerging Markets | Permalink