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Alternative Market Briefing

Opalesque Roundup: Geopolitical shocks cause emerging market hedge funds to soar: hedge fund news

Monday, June 30, 2025

In the week ending June 27th 2025, HFR reported that Emerging Markets hedge funds surged in May and posted strong YTD gains through May 2025 as global geopolitical and, specifically, regional Middle East tensions escalated into military conflict, impacting a wide range of energy, shipping and trade. The HFRI EM: India Index surged +4.5 percent in May, while the HFRI EM: Latin America Index added +2.1 percent in May to increase its YTD return to +11.3 percent, HFR reported.

Meanwhile, hedge fund leverage hit a five-year high last week, with speculators buying banks, trading companies and insurance firms, Goldman Sachs data showed, after U.S. interest rates held steady and just before U.S. attacks on Iran's nuclear sites. The U.S. Federal Reserve held interest rates steady on Wednesday last week and indicated they were in no rush to cut interest rates.

In new launches, Man Group is the latest, and largest, publicly traded hedge fund manager to enter the exchange-traded fund market after filing a preliminary prospectus with the Securities and Exchange Commission on June 13 for two active fixed-income ETFs; Morgan Stanley Capital Partners (MSCP), a middle-market private equity platform primarily operating in North America, has collected $3.2 billion for its ......................

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