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By Benedicte Gravrand, Opalesque London:
At the London Fortis Prime Fund Solutions event on Thursday called ‘Dealing with the consequences,’ Michel Danechi, portfolio manager at Armajaro, a commodity hedge fund group headquartered in London, listed eight good reasons why emerging markets (EMs) will outperform other markets in the next 5 to 10 years – or even in the nearer future.
According to recent reports from Chicago-based industry database HFR, emerging markets funds posted a gain of nearly 8% in April, the strongest since 1999, and have returned more than 9% YTD, with contributions from Latin America, Russia and China – the HFRI Emerging Markets (Total) Index returned -28.41% in 2008, which was one of the worst performances. And the HFRI Asia ex-Japan Index gained more than 8.5% YTD through April – although investors withdrew $9bn from hedge funds investing in Asia in the first quarter of 2009.
The Barclay Emerging Markets Index is so far at 8.81 % (April), and 8.97% YTD. And the Eurekahedge Emerging Markets Hedge Fund Index is so far at 5.59% and 8.15% YTD - compared to -23.38% in 2008.
But some analysts said that EMs’s recent good performance was not sustainable. Nadia Papagiannis, a hedge fund analyst told Dow Jones last month that “most emerging markets countries either outlaw...................... To view our full article Click here
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