Emerging market hedge funds see surge in inflows
Money is pouring into emerging market hedge funds for the first time in two years.
Investors added a net $800 million to funds focused on the category in the second quarter, the first inflows since the second quarter of 2015, Hedge Fund Research Inc said on Tuesday in a report. Since June 2015, the funds had been hit by more than $9.6 billion in outflows as regional currencies sunk.
“Investor risk tolerance increased, driven by outstanding performance and regional equity market outperformance concentrated in emerging Asia,” HFR President Kenneth J Heinz said in the report. The new capital helped increase assets in emerging market hedge funds during the quarter to a record $213.3 billion, HFR said.