Emerging market hedge fund assets at record $121 bln - HFR

Date: Monday, June 6, 2011
Author: Nishant Kumar, Reuters

Assets managed by hedge funds betting on emerging markets rose to more than $121 billion in the first quarter of 2011, toppling the previous record of $117 billion set in 2007, according to data released by industry tracker Hedge Fund Research (HFR) on Friday.

The quarterly asset total increased by more than 6.5 percent as hedge fund investors raised exposure to emerging Asia and Russia, HFR said in a statement.

The increase in assets includes an inflow of about $2.3 billion in new capital, primarily in emerging Asia, and $5.1 billion in performance gains.

"The record level of assets invested in emerging market hedge funds represents the latest evidence that global investors continue to exhibit a preference for accessing specialised emerging markets exposure via hedge funds," said HFR President Kenneth Heinz.