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Alternative Market Briefing

Nordic hedge fund managers see risk reward opportunities in Eastern Europe and Iceland

Tuesday, September 25, 2012

amb
Carl Meurling
From Komfie Manalo, Opalesque Asia:

Nordic-focused hedge fund managers believe that the markets of Eastern Europe and Iceland offer a wide range of risk reward opportunities and that the region is on its way to complete recovery after the 2008 global financial crisis.

Speaking as one of the participants in the latest Nordic Opalesque Roundtable, Carl Meurling CEO and one of the Founders of EME Partners, investing in long/short equity strategies in Eastern Europe including Russia and Turkey, described the Eastern European markets as suffering an extreme downturn in the first three weeks of October 2008.

At the time, the index was down 65% in only three weeks which was a world record. Back then, many fund managers worried that the financial markets in the region would go back to the type of primitive state they were in around ten years before or around 1998. But Meurling said that luckily, that has not happened, the markets in the Nordic region continue to become more and more sophisticated. The opportunities and range of instruments that investors can trade is expanding, "and that is very encouraging and makes us optimistic that we can continue to do well going forward."

Muerling told the participants, "Today around 80-100 stocks can be shorted in Emerging Europe and we can also use other instruments for protection, such a......................

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