The Hedge Funds Weblog
Frontier Markets Fund Launch
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Using a different approach to the hedge fund market, a Copenhagen fund has launched DanFonds 'Frontier markets hedge fund', a hybrid between the public market hedge fund approach and the private equity model.
In a press call with Alex Akesson on Friday, CEO of DanFonds, Daniel Broby, referred to 'peak oil', and the 'commodity super cycle' and also how the writing off of debt by the Paris club has opened the market for frontier funds.
"What we are seeing is generational change; the industrialisation of the final countries that had been left behind." Broby said, "These are not markets for the faint hearted. They are corrupt, illiquid and difficult to access. On the other hand, that is compensated for by the risk premium and the expected returns."
With a philosophy of 'Globalisation is just an extension of industrialisation' and that 'frontier markets are the next emerging markets', their website says that frontier markets are at the very edge of the investable public securities universe.
However, there is potential for high return. With a combined market capitalisation of around $1.7 trillion, frontier markets are in the early stages of development and growing towards entry into the emerging markets indices.
"You either believe in the opportunity or you do not. We don't try to convince investors. We mearly structure the best way to capture that opportunity." Broby concluded.
More at; DanFonds Launches Frontier Hedge Funds
2 Comments so far ...
I think many hedge funds will continue to move to a more private equity & hedge fund mix. I think PE firms will also continue to add hedge fund arms.
Comment on July 14, 2008 12:39 pmOur firm is positioned to help investors interested in frontier markets.
Comment on September 26, 2009 03:54 pmBello & Manchau, Inc. (B&M) is the first and only political risk consultancy focusing exclusively on Africa. We help our clients navigate and manage the risk of doing business in Africa by closely monitoring and analyzing political, economic, security and social developments across the continent and forecasting the impact of these developments on a client’s bottom-line.