Hedge funds investing in emerging markets have outperformed their benchmarks this year, according to data from Hedge Fund Research. Hedge funds investing in emerging markets delivered returns of 14.7% in the first nine months of the year, as tracked by the HFRI Emerging Markets Total Index. This number contrasts with the 7.3% increase in the HFRI Fund Weighted composite index in the period.
This year's performance is keeping pace with the two previous years. The emerging market index gained 18.42% in 2004 and 39.36% in 2003.
HFR estimates that approximately $4.1 billion was poured into emerging markets hedge funds in the first two quarters of 2005, following $4.7 billion in 2004 and $3.3 billion in 2003. The estimated number of hedge funds investing in emerging markets is approximately 350, and the HFRI Emerging Markets Total Index tracks 140 hedge funds.
Recent stock prices as well as sovereign bonds both boosted the performance and stability of the emerging markets fixed income and equities.
Meanwhile, HedgeFund.net reported that hedge funds rose 1.73% in September and are up 6.32% through the first nine months of this year. The top 25% of hedge funds delivered returns of 2.62% in September and 9.73% in the first nine months.
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