Mon, Nov 29, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Emerging markets hedge funds extend strong gains through mid-year 2021

Friday, August 27, 2021
Opalesque Industry Update - Emerging Markets (EM) hedge funds, led by funds investing in India, Russia, China, and the Middle East extended strong gains through mid-year 2021 as EM hedge fund capital eclipsed another record, with performance again topping gains in EM regional equity markets and complemented by volatile cryptocurrencies.

The HFRI Emerging Markets (Total) Index has returned +8.1 percent YTD 2021 through July, led by the HFRI Emerging Markets: India Index, which surged +33.3 percent, while the HFRI Emerging Markets: Russia/Eastern Europe Index vaulted +16.3 percent YTD, 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 investable HFRI 500 Fund Weighted Composite Index, which includes funds across all regions in both Emerging and Developed markets, has gained +8.8 percent YTD 2021 through July.

Total Emerging Markets hedge fund assets increased to a record of $273.7 billion to end 2Q21, representing an increase of $8.87 billion over the prior quarter and $17.0 billion since year end 2020.

While EM hedge fund performance was led by India and Russia, other EM regions also posted strong performance. The HFRI MENA Index jumped +11.0 percent through July while the HFRI EM: China Index added +7.0 percent YTD 2021, topping the performance of the Chinese equities. The HFRI EM: Latin America Index posted a modest gain of +1.1 percent YTD through July, though still topping the moderate decline of Brazilian equities.

Hedge funds across EM regions including Korea, Russia, China, and the Middle East (as well as Japan) have become increasingly active in cryptocurrency trading. Despite recent volatility, the HFR Cryptocurrency Index has surged +174 percent YTD 2021 through July, though paring gains in recent months as many currencies fell sharply from record highs.

Total capital invested in Asian hedge funds increased to a new record of $138.5 billion to end 2Q21, representing an increase of $5.9 billion over the prior quarter and $12.6 billion since year end 2020.

"Emerging Markets hedge funds performance and capital extended to 2021 surge as the global economy reopening progressed through mid-year, albeit with complications from new virus variants. Inflationary pressures remain present across both EM and developed markets, with EM hedge fund performance topping the performance of most respective EM regions. Once again, hedge funds across both EM and Japan have continued to increased exposure to cryptocurrencies, mirroring expansion of consumer adoption and usage of cryptocurrencies in EM regions," stated Kenneth J. Heinz, President of HFR. "Leading global institutions and investors extended their increases exposures to EM and Cryptocurrency hedge funds, positioning for continuation of powerful and favorable EM and cryptocurrency trends through 2H21."

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. PE/VC: Moody's warns of 'systemic risks' in private credit industry, Sequoia to restructure itself away from traditional VC model, Modeling private equity market beta, VC investors pour money into Chinese start-ups despite regulatory crackdown[more]

    Moody's warns of 'systemic risks' in private credit industry From FT: The burgeoning private credit industry of lending to buyout groups has grown to about $1tn, but opacity, eroding standards and the difficulty in trading these slices of debt pose "systemic risks", according to rating

  2. PE/VC: Private equity M&A frenzy has cautious undertones, Venture capital exit values soar, Private equity and venture capital drove outsized returns at Bowdoin, Harvard, and the University of Pennsylvania, Private equity tops explosive tech growth as returns rocket[more]

    Private equity M&A frenzy has cautious undertones From Reuters: Private equity dealmakers are in two minds. Buyout barons, led by titans like Blackstone boss Steve Schwarzman, are on track for a record year for takeovers. Yet they're also offloading companies at a much faster pace than

  3. SPACs: Trump-tied SPAC seeks Wall Street support, Nextdoor surges in public market debut after SPAC merger, Barrows Hotel Enterprises considers SPAC merger, Aussie SPAC targets big deal after NASDAQ IPO[more]

    Trump-tied SPAC seeks Wall Street support From Al Jazeera: Day traders and Reddit enthusiasts helped fuel a spectacular rally in Digital World Acquisition Corp shares, which reached a closing high of $94.20 last month before leveling out to recently trade around $60. The blank-ch

  4. Tiger funds change some stripes, Melvin Capital's comeback plan, What's behind Sachem Head's surge?, One of Asia's oldest hedge funds is buying distressed China debt[more]

    Tiger funds change some stripes From Institutional Investor: Falcon Edge, Light Street, Lone Pine, Viking, and Hound made significant buys and sells in the third quarter. Falcon Edge Capital Management exited its two largest U.S. long positions in the third quarter, according to

  5. Opalesque Exclusive: TRF - the right product at the right time (part 1)[more]

    B. G., Opalesque Geneva: Eurex, an international derivatives exchange and a member of the Deutsche Börse Group, has been churning out its pioneering Total Return Futures (TRF) since 2016. In a