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Alternative Market Briefing

Global emerging markets lead hedge fund industry gains as geopolitical risk surges, AUM increases

Monday, June 24, 2024

Matthias Knab, Opalesque:

HFRI EM Global gains accelerate, led by Asia, India; HFR Cryptocurrency Index extends YTD surge to 35% through May

Emerging Markets hedge funds gains accelerated through mid-2Q, leading industry-wide regional performance with contributions across regions as already-elevated geopolitical risk continued to rise, driven not only by ongoing and potential military conflicts, but also the volatile impact of elections throughout Europe and the US, and associated policy changes in 2H24. EM investors have continued to navigate an evolving macroeconomic landscape, with expectations for interest rate cuts in the US and European regions diverging, and as inflation continues to cast an uneven picture through mid-year.

The HFRI Emerging Markets: Global Index gained +6.8 percent YTD through May, led by the HFRI EM: Asia ex-Japan Index, which jumped +5.1 percent, and the HFRI EM: India Index, which advanced +4.3 percent YTD through May, as reported today with the releases of the HFR Asian Hedge Fund Industry Report and the HFR Emerging Markets Hedge Fund Industry Report from HFR, the established global leader in the indexation, analysis and research of the global hedge fund industry.

The HFRI Emerging Markets (Total) Index, which covers all EM regions, advanced +4.2 percent YTD through May, while the HFRI Fund Weighted Composite Index, which consists of funds investing in both Emerging and Developed markets, gained +5.2 percent YTD, led by the H......................

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