Year-to-date returns for hedge funds are showing signs of recovery, particularly in emerging markets where managers are spurring the playing field and pushing gains.
Both BarclayHedge and eVestment recently published data showing the extent to which emerging markets and Asia-focused hedge funds bypassed other geographical regions in August, upending the July downturn.
The overriding theme points to a shift in consumer spending in evolving economies which is also linked to the development of the middle class in emerging markets that have increased disposable income. Even with the market volatility of Covid-19, the confluence of people in emerging markets getting wealthier and older, the increase in virtual and online consumerism, and a flourishing local travel economy, yielded positive returns for hedge funds in these markets.
