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Matthias Knab, Opalesque: Emerging Markets hedge funds surge accelerated into 2H25 driven by gains in rates, trade and falling geopolitical risks
HFRI Japan and EM: China Index lead regional performance YTD; Asian hedge fund gains driven by AI investment, Cryptocurrencies
Emerging Markets hedge fund performance accelerated into 2H25, powered by expectations for falling interest rates, an improving global growth outlook, progress on trade and tariff negotiations, and optimism about near-term resolutions to military conflicts. In August, the HFRI EM: China Index gained +6.5% and the HFRI Japan Index added +4.1%, lifting year-to-date returns to +16.2% and +16.5%, respectively. The data accompany the releases of the HFR Asian Hedge Fund Industry Report and the HFR Emerging Markets Hedge Fund Industry Report.
Across Emerging Markets overall, the HFRI Emerging Markets (Total) Index advanced +3.5% in August and +13.2% year-to-date through August, outpacing the globally diversified HFRI Fund Weighted Composite Index (FWC), which rose +7.2% over the same period. Strategy-wise, the directional HFRI Equity Hedge (Total) Index climbed +3.1% in August and +10.7% year-to-date.
Other regional EM indices were also strong year-to-date: the HFRI Latin America Index rose +12.1%, while the HFRI EM: MENA Index advanced +13.6%....................... To view our full article Click here
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