Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Latin America focused hedge funds outperform despite regional risks, outflows; currency wars abate

Tuesday, March 05, 2013

Bailey McCann, Opalesque New York: A new data release from eVestment showed that hedge funds investing in Latin America were up 7.29% in 2012 and 1.16% in January 2013 compared to the hedge fund aggregate performance of 6.59% and 2.51%, respectively. Notably, Latin America funds experienced net investor outflows in 2012 of $860m, but performance related gains of $2.43bn offset investor redemptions for a total AUM increase of $1.57bn. January 2013 saw a $0.27bn increase in total AUM including net investor allocations of $60m. Investors have had an on again, off again relationship with emerging markets since the crisis, but Latin America has provided one of the most consistent growth stories despite broad based regional political and economic risks.

Brazil tempers currency wars rhetoric

As Opalesque reported at the end of last year, Brazilian Finance Minister Guido Mantega, accused the US of inciting a global currency war when it announced QE3, partly because the nature of US monetary policy would trigger volatile capital inflows into emerging markets like Brazil, appreciating the currency. However, that line seems to be tempering. Mantega announced that he is abandoning efforts to push down the real as the currency markets exhibit lower than average volatility.

The demand for more stimulus is growing, even as the U......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo