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From Precy Dumlao, Opalesque Asia:
During the recent Opalesque Connecticut Roundtable, we learned that some of the strategies perceived by investors to be the riskiest, are those that may offer the best opportunities for performance in the future.
Emerging markets, real estate and global macro
During the Roundtable discussions, two interesting observations were made by Ajay Jani from Gramercy, a $2.5bn Greenwich, Connecticut-based emerging markets business.
First, most of the recent and foreseeable crises are starting come out of the developed world, like members of the G10 and G20 unlike in the past that financial crises originate from emerging markets. "The second observation is related to our investors," said Jani. "Roughly two-thirds of our investors are long-term investors, like pension funds or endowments. On average, those investors have about 5% in emerging markets. I do not know what the right amount is, they do not know what the right amount is, but in their mind they think the right amount is higher. So, there seems to be a tendency where some investors started to throw money at emerging markets almost without care.'
Emerging markets also provide lower liquidity compared to G-10 markets, and the big risks are that a lot of these countries are not necessarily prepared to take th...................... To view our full article Click here
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