(Bloomberg) -- The first quarter is ending, and the tally is in: emerging markets are winning hands down.

Developing-market equities have handed investors a 12.4% return this year, twice that of developed stocks, for their best start to a year since 2012. A gauge of local-currency emerging-nation bonds is up 7.4%, more than three times as much as the Bloomberg Barclays global fixed-income index. The gains have been so strong that short sellers are now piling on bearish bets.

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