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Latin America accounts for 7.9% of the world's GDP and 7.4% of the world's population, according to GFIA's Latin America Hedge Fund Note released today, but its capital markets are bigger than those numbers would suggest. Similarly, Latin America is still an under-represented region in the global hedge fund industry. With an estimated US$27.8bn of assets and 212 hedge fund managers, it represents less than 2%3 of the total universe.
The majority of Latin American hedge funds are focused on Brazilian markets, and Brazil is where most of the assets and managers are. Hence, the main focus of GFIA's paper is the development of the Brazilian hedge fund industry. The paper explores the industry's decline in 2008, the market environment, the history, strategies, the regulatory environment, opportunities, risks and future developments.
In this last section, the report says: "So far, the demand for Latin American hedge funds has been predominantly local, as can be
seen from the large number of onshore hedge funds in Brazil. Interest from international
investors in 2007 and early 2008 was noticeably higher than five years ago, but that has not
translated into massive inflows. Global risk aversion and the relative lack of familiarity with the
Latin American universe mean that flows may remain at low levels for the foreseeable future.
"Nevertheless the region offers an interesting opportunity of investing in highly skilled but (outside
the region) relatively un...................... To view our full article Click here
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