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Alternative Market Briefing

Cautious optimism, profit-taking may prevail in Q4 in emerging markets

Friday, December 04, 2009

From Christine Gaylican, Opalesque Asia:

As early market jitters transpired in the first week of December, some serious profit-taking eroded both the alternative funds and equity markets, Singapore-based advisory firm GFIA said in its latest report.

In the report emailed to Opalesque, GFIA said "news of Dubai World requesting for an extension on maturing debt triggered global sell-offs."

This caused equity markets to tumble: the MSCI Asia Pacific and the MSCI Asia excl-Japan by -3.1% and -3.6%, respectively in the last days of November, GFIA said.

On the other hand, the Eurekahedge Asian Hedge Fund Index was up 0.24% (est.) in November and 22.23% YTD.

'Choppy' markets ahead; Emerging LatAm and Russian markets doing well

Although GFIA is cautiously optimistic that the fourth quarter has been historically favorable for hedge funds based on historical data, the "choppy behavior of markets over the next two months would still be evident."

Nevertheless, Eurekahedge has estimated a 1.71% growth for hedge funds in general in November (18.19% YTD) and those results would be given the needed push by Latin America (2.07% est., 25.14% YTD) and Russian and Eastern Europe markets (3.16% est., 61.65% YTD) (Source).

GFIA said the LatAm and Russian markets, on the other hand remained relatively unscathed, said GFIA. The MSCI EM Latin America index and the R......................

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