Hedge Funds Silver

Hedge Funds Silver

Hedge Funds Bullish on Emerging Markets, Silver

Hedge funds are crowding into the emerging markets, where investors expect there to be a lot of volatility. Hedge funds also remain bullish on silver according to a research report by Bank of America Merrill Lynch.
The rekindled bullishness about emerging markets comes on the heels of a sharp correction in these developing countries at the beginning of the year. Emerging markets shares have recovered since, though these formerly hot investments are still lagging their developed-country counterparts.

Diversified emerging-markets retail mutual funds, for example, advanced 4.2% on average so far this year through April 29 — posting less than half of the Standard & Poor’s 500-stock index’s 9% gain, according to investment researcher Morningstar Inc. Latin America funds have been the worst of the group, rising just 0.8% on average.

Typically investors do well to follow the moves of the big-money hedge funds. “Generally they find a trade and stay with the trade,” Bartels said.

But the trading action creates short-term volatility, which can test investors’ mettle. Source

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