Emerging Market Outflows
Emerging Market Hedge Funds Suffer $1.5 Billion in Outflows
Investors took money most aggressively out of hedge funds focused on Russia and emerging Asia while Latin America- and Middle East-oriented funds continued to attract cash, according to a report by Hedge Fund Research.
The findings suggest the euphoria over faster growth in emerging economies cooled substantially during the quarter as global markets felt the effects of Europe's sovereign debt crisis.
Other hedge funds, however, continued seeing fresh money come their way. The overall industry posted capital inflows of $9.6 billion during the quarter, bringing net gains for the first half of 2010 to $23 billion.
By contrast, investors took $2 billion out of emerging-market hedge funds during the first six months of the year. Source