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From Komfie Manalo, Opalesque Asia:
The landscape of the hedge fund industry in Latin American (LatAm) changed dramatically in the past several years as fund managers in the region have successfully entered the competitive global race to win investments, according to data provider Merlin Securities.
From being shunned by many investors because of the unstable or "boom and bust" economies in the region, Latin America is enjoying a reemergence of talent and balanced risk taking in the hedge fund sector. But Merlin was quick to warn that even with the relatively promising outlook, managers in the LatAm region must be prepared to compete in a tough global environment.
Part of the reemergence of focus in LatAm is the strong monetary policies introduced by many economies in the region which resulted to a well-capitalized banking system with healthy credit. These policies were not left unnoticed by international investors, many of whom shifted their attention to LatAm after launching due diligence processes in China and India. Many of these investors were impressed by the "Brazil story," Merlin said.
In its report, The Spectrum of Investors for Latin American Hedge Funds, Merlin revealed that direct foreign investments into the LatAm region reached an unprecedented level of $100bn by 2007. This attracted a good number of talented fund managers with varying degrees of experienc...................... To view our full article Click here
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