Hedge Fund Strategy – Emerging Markets Fund
ByAn emerging market hedge fund is a hedge fund that specializes its investments in the securities of emerging market countries.
Although there is no exact definition of “emerging market countries,” these countries are in the process of developing. They typically have per-capita incomes on the lower to middle end of the world range, and are in the process of moving from a closed market to an open market.
As a result, emerging market countries include a wide range of nations. China and Russia, two of the world’s economic powerhouses, are lumped in the emerging market category with Peru, a much smaller country with fewer resources, because all have recently embarked on economic development and reform programs, and have thus “emerged” onto the global financial scene. In fact, while only around 20% of the world’s nations are considered emerging market countries, these countries constitute approximately 80% of the global population…