Opalesque Industry Update – Emerging markets hedge funds posted industry-leading gains in 2010, led by funds with regional exposure to Russia and the Middle East, according to Hedge Fund Research, Inc. (HFR), the leading provider of hedge fund industry data. As a direct result of these gains, assets invested in emerging market (EM) hedge funds increased by nearly $10 billion in the fourth quarter to end the year at more than $114 billion, approaching the record level of AUM for EM hedge funds set in 2007.
The HFRI Emerging Markets (Total) Index gained +11.79 percent for 2010, topping the gain of +10.30 percent for the HFRI Fund Weighted Composite Index, the leading benchmark of global hedge fund industry performance. EM performance in 2010 follows gains of more than 40 percent in 2009 and is particularly significant considering the EM volatility which characterized 2010. Several regional EM equity markets posted declines for the year and the HFRI EM (Total) Index posted gains in only six of the twelve months in 2010.
