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Emerging markets hedge funds surge mid-2024, says HFR

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Emerging markets hedge funds saw accelerated gains through mid-2024, according to the latest data from Hedge Fund Research. 

The HFRI Emerging Markets: Global Index, published by Hedge Fund Research, recorded a 6.8% increase year-to-date through May. This growth was primarily driven by the HFRI EM: Asia ex-Japan Index, which rose 5.1%, and the HFRI EM: India Index, which climbed 4.3%.  

Total AUM for emerging markets and Asian hedge funds have surged, reaching approximately $250bn. The estimated capital invested in Asian hedge funds alone has nearly hit $133bn, marking the highest levels of capital since Q2 2022. 

The HFRI Emerging Markets (Total) Index, encompassing all emerging market regions, advanced by 4.2% year-to-date through May. Additionally, the HFRI Fund Weighted Composite Index, which includes funds investing in both emerging and developed markets, increased by 5.2% over the same period. The growth of the latter was led by the HFRI Macro (Total) Index, which saw a 7.0% rise in the first five months of the year. 

Performance across other regional emerging markets indices varied through early 2024. The HFRI EM: Latin America Index posted a modest gain of 0.2% year-to-date, whereas the HFRI EM: MENA Index dropped 2.8% due to rising geopolitical risks. 

Additionally, hedge funds with significant exposure to cryptocurrency across emerging market regions, including South Korea, Russia, China, the Middle East and Japan, have experienced substantial gains. The HFR Cryptocurrency Index surged by 34.9% year-to-date through May, following a remarkable 67.7% increase in 2023. 

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