hedgefunds

EM Market Moves

Filed in archive Hedgetalk on August 25, 2009

EM Market Moves
Looking at the charts of performance for emerging markets across the globe, analyst Alex Thompson noticed that while volatility varied from country to country, every chart had the same shape. Every trend line moved together.

MSCI Barra provides charts of the individual emerging markets based on the listed equities of each country. Each emerging market was booming up until 2008, took a sharp decline in the middle and end of 2008, and bounced back at the beginning and middle of 2009, which probably isn't surprising to anyone reading this. "Some of emerging markets hedge funds were down almost 50 percent," according to Andrew Schneider, managing partner of HedgeCo Networks. "Take the Tarpon All Equities Fund for example. They lost 43 percent in 2008." While this type of volatility is expected in the emerging markets universe, fund managers and investors don't have to withstand these massive losses to access the spectacular gains of better years.

Neutralizing the Emerging Markets Market


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Tags: hedge+fund  hedge  fund  2009  market  emerging+markets  market+moves 

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