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Alternative Market Briefing

All signs point to a strong July with convertible arbitrage and emerging markets logging the best performance gains

Thursday, August 06, 2009

From The Opalesque Team:

The summer market rally has investors expecting strong July performance out of hedge funds, and according to the projections made by Markov Processes International, it appears that almost every strategy is expected to deliver gains. "Given the market rally in July, our findings project another solid month for the majority of hedge fund strategies," said the firm's online projections posting.

Across the industry average gains are likely to be around 2.5%. Equity market neutral is likely to be the only poor performing strategy, with index projections hovering around an average of -63bps. The month's biggest winners will be convertible arbitrage and emerging markets, both averaging index returns of approximately 4%.

Emerging into the limelight July may only be a few days into history but investors who are still jittery about the financial markets and the US economy have begun to latch onto the bullish outlook many have for emerging markets.

Numerous opportunities are seen for the emerging market countries that have rapidly gorwing populations, poised for development growth. Asset management firms such as BlackRock have expectations for emerging markets to outperform developed markets, and Templeton Asset Management's bullish expectations for emerging market growth reach out two years as the fi......................

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