The surge in global inflation, the strength of the US dollar and the war in Ukraine have all combined to create huge challenges for hedge funds focussed on investments in Eastern Europe, with returns expected to be their worst in eight years, according to a report by Reuters.
The surge in global inflation, the strength of the US dollar and the war in Ukraine have all combined to create huge challenges for hedge funds focussed on investments in Eastern Europe, with returns expected to be their worst in eight years, according to a report by Reuters.
The report cites the BarclayHedge Eastern European index, which tracks the performance of hedge funds trading stocks and bonds in the region, as revealing that performance has dropped by 22.65% from the start of 2022 to the end of August, putting it on track for its worst performance since 2014.
Another BarclyHedge index, which tracks fund managers trading Eastern Europe stocks only, has fallen even further and is down by almost 32% over the same time period.
In addition, the MSCI EM Eastern Europe ex-Russia index, which trades in euros is down just over 30% year-to-date, underperforming wider emerging market equities as well as global stocks benchmarks. The MSCI International EM Price Index is down 22% and the MSCI All Country World Price Index is down 20%.
