Hedge funds are increasingly realising strong returns from Korean equities, it has been claimed.
Hedge funds are increasingly realising strong returns from Korean equities, it has been claimed.
Paul Wimborne, manager of the Baring Emerging Markets Fund, claimed that investment opportunities resulted in his fund increasing by five per cent since September 2009, bringing its total holding in the country to its largest overweight holding in three years – 13.8 per cent.
He stated: “There are a number of cyclical opportunities as the global recovery continues and both emerging and OECD companies look to restock inventories, such as in technology, energy and metals.”
It is technology and materials which leads Mr Wimborne to believe that Korea offers hedge funds a compelling reason to invest in the country.
He emphasises the fact that he prefers domestically-focused firms that show long-term growth potential.
Gigi Chan, manager of the Threadneedle China Opportunities Fund, recently claimed that the Chinese markets have inspired hedge funds with a mixture of fear and awe due to the uncertain successfulness of government policy.
