Hedge Fund Investors Look to Liquidity, Flexibility of Emerging Markets

May 3, 2010

Predicting a positive but shaky year ahead, alternative investors are looking abroad to reap the benefits of the global recovery. Nearly half of the 1,300 alternative investors surveyed by Brighton House Associates in the fourth quarter said they were interested in hedge funds following global macro trends because of the strategy's broad economic approach and highly liquid structure. Interest in emerging markets by U.S. investors has burgeoned over the past two years, as economies in these markets fared far better than the badly damaged American economy. As American credit froze to a near halt, banks in China, India and Brazil, for instance, continued to lend freely, with some of these countries even posting double-digit GDP growth as the U.S. contracted for four consecutive quarters.

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