Wed, May 22, 2013
A A A
Welcome Guest
Free Trial RSS
New! Family Office and Investor Database with 11,750 contacts
Alternative Market Briefing

2009 outlook (7) – Opposing views on the fate of emerging markets: economists vs. Ashmore
Wednesday, January 14, 2009

By Benedicte Gravrand, Opalesque London. See yesterday’s 2009 outlook (5) here.

Economists see collapse of emerging markets

A problem with hedge funds is that some of them, according to Saxo Bank’s estimates, are partly correlated to the stock markets and to emerging markets. Chief economist David Karsbøl believes that most hedge funds have not brought their exposure to emerging markets down enough. “This is going to hit them,” he said.

Saxo Bank has very bearish views on E.M. economies which are not expected to recover before the Western economies. “Especially Eastern Europe, which is way too dependent on foreign capital,” he added.

Indeed Strauss-Kahn recently declared the IMF needed an additional $150bln to help emerging economies. “Just to keep Eastern Europe going in the first part of the year,” Karsbøl specified. “And I very much concur.” (See Outlook (4) for more on Eastern European economies.)

The same goes for areas which are export-oriented such as South-East Asian economies. Taiwan’s, South Korea’s and China’s exports have plunged in 2008. And those economies have no plan B, says Karsbøl. The Chinese are now sitting on a huge pile of U.S. debt and they have no plan as to who to produce for, as they have no domestic consumptio......................

To view our full article Click here
Article link
Banner
Today's Exclusives Today's Other Voices Banner More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Performance – Chenavari Investment holds off U.S. dominance to crack big league of top hedge fund performers, BlueCrest credit hedge fund makes gains despite European short bias, Sensato Asia-Pacific Fund up 15% YTD, says Japanese stock valuations are no longer attractive, ETF that follows hedge fund gurus is up 52% since inception less than a year ago[more]

    Chenavari Investment holds off U.S. dominance to crack big league of top hedge fund performers From Cityam.com: A boutique London-based hedge fund has smashed into the top three best performing funds in the world this year, breaking the dominance of US hedge fund managers, according to a

  2. Opalesque Exclusive: New research examines quantitative trend following as an equity risk hedge[more]

    Bailey McCann, Opalesque New York: New research from Nigol Koulajian founder and CIO, and Paul Czkwianianc, Head of Research at Quest Partners, a New York-based systematic fund, looks at how quantitative trend following could be used

  3. Fund Profile – Brazil’s Vinci sets sights on global partners[more]

    From eFinancialnews.com: Two years ago, Brazilian asset manager Vinci Partners decided to diversify its investments overseas. About 95% of its money was invested in Brazil. It set up an office in New York, formed Vinci USA as an incubator for emerging hedge fund managers and hired as its US chief ex

  4. Other Voices: Three 'game changers’ have limited contagion in European markets[more]

    This piece was authored by Melanie Rijkenberg, CFA, Associate Director, Pacific Alternative Asset Management Company Europe LLP. Since the start of the year we have seen a clear de-correlation in global markets and most n

  5. A hard asset niche fund that focuses on grain-based commodity arbitrage: A fund structure has been wrapped around a trading strategy that identifies structural inefficiencies within the grain complex - applies logistics to capture arbitrage opportunities. Initially will focus on the CIS markets
Click here for More about Opalesque Tracking
- A new, unique Premium Service -
  1. Penrich
  2. MS
  3. MGH
  4. NZARA
  5. 36 South
  1. Ucits
  2. global macro
  3. managed account
  4. asian hedge fund
  5. King Street