Emerging market-focused leveraged accounts has their best year since 2009. Despite the fact that Hedge funds are exposed to capital outflows in most of the regions in the world and have to cut fees to please customers, they still have high profits in emerging markets.
According to Hedge Fund Research Inc., emerging market-focused leveraged accounts provided 14 percent return in the first seven months of this year. These calculations are on the way to complete the best year since 2009, after they provide an average 20 percent return.
Emerging markets are lagging behind their counterparts in the developed economies with faster growth and narrower current account deficits. On the one hand, low interest rates in Japan, Europe and the United States make more risky assets to be more attractive. Emerging market equities provided the largest monthly earnings since 1993 in the first half of the year. Emerging market hedge funds have a strong performance this year, depending on their tremendous value search.