Having correctly predicted in February that the rally in emerging markets between October and February would soon reverse, Man Group, the world’s largest listed hedge fund, says risky assets will see even bigger losses later this year, according to a report by Bloomberg.
Having correctly predicted in February that the rally in emerging markets between October and February would soon reverse, Man Group, the world’s largest listed hedge fund, says risky assets will see even bigger losses later this year, according to a report by Bloomberg.
Since Man Group made its initial prediction, sovereign dollar bonds from emerging markets have landed investors with a 2.2% loss, while the benchmark MSCI emerging-markets equity index has fallen by almost 7%.
The report quotes Guillermo Osses, the firm’s head of emerging-market debt strategies in New York, as saying that: “Our argument is still pretty much in play. We have one of the most defensive positions we have ever had.”
Man Group’s bearish stance contrasts with other Wall Street firms including BlackRock Inc, and the asset-management units of Morgan Stanley and JPMorgan Chase & Co, who have all recommended increases emerging markets investments. Goldman Sachs Group Inc also has a positive view on EM currencies.
