EM’s Record Rally Leads Two Hedge Funds to Turn Away Investors Bloomberg.com
The strong performance in Emerging Markets (EM) is reaching a point where some funds are managing capacity, indicating significant capital inflows and positive momentum.
This indicates strong investor confidence and significant capital allocation towards EM, potentially driven by a search for yield and diversification away from developed markets.
Two hedge funds are turning away new investors, suggesting a peak in current EM enthusiasm and a potential limit to easy capital access for some strategies.
- · Emerging Markets equity
- · Active EM fund managers (existing investors)
- · EM economies
- · Investors seeking new entry into these specific funds
- · Developed market assets (relative performance)
Record rallies in EM draw more attention and capital to these markets.
Increased capital flows could lead to potential overheating or increased volatility in certain EM assets.
Sustained EM strength might encourage a broader re-evaluation of global investment strategies and asset allocation away from traditional safe havens.
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Read at Bloomberg — Technology (Google News)