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January 9, 2007
Emerging Market Hedge Funds 2006 Returns Best In 3 Yrs - HFR
Emerging market hedge funds were the best performers in the hedge fund asset class in 2006, posting the best performance in three years, Hedge Fund Research said Monday.
The HFRI Emerging Markets index rose 25.13% in 2006, better than the 21.04% in 2005 and the best year since 2003, when it returned 39.36%, according to HFR data.
By comparison, the broad HFRI Fund Weighted Composite Index was up 12.99% on the year. The HFRI Fixed Income Convertible Bonds Index was the only one that posted similar returns to emerging markets, at 24.86% for the year.
Among the emerging market subindexes, the Eastern Europe/CIS Index was the best performer last year, with returns of 37.02%. The Asia index was up 29.08%, while the Latin America index was up 15.73%.
According to HFR, emerging market hedge funds had attracted $7.2 billion funds in the first nine months of 2006, up from $5.3 billion in the same period of 2005. At the end of the third quarter, emerging market hedge funds accounted for about 4.2% of the total hedge fund universe of about $500 billion, it said.
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Posted by su at January 9, 2007 11:26 AM