| 27 Aug 2009 |
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MENA Hedge Funds Boost Assets 10-fold to $1.17b
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DUBAI -- Hedge funds focusing exclusively on the Middle East and North Africa have seen a 10-fold increase in assets under management over the past five years, with futher gains of about 17 per cent through the first half of 2009, according to Hedge Fund Research, a provider of hedge fund industry data.
The Middle East and North Africa region, also known as MENA, is the smallest emerging market in terms of dedicated capital. It currently has more than 20 hedge funds that account for 1.52 per cent, or $1.17 billion, of the $77 billion in total assets invested in emerging markets worldwide, Hedge Fund Research, or HFR, said in a statement on Wednesday.
Globally, assets invested in hedge funds increased by $100 billion in the second quarter of 2009. For an industry with a total of $1.43 trillion in assets, this was the first increase since hedge fund assets peaked at $1.93 trillion in the second quarter of 2008. A 60 per cent drop in investor withdrawals in the second quarter of 2009 contributed to this asset growth, HFR said.
Returns for hedge funds investing in emerging markets far outpaced the average performance in the broad hedge fund universe in the second quarter of this year. The HFRI Emerging Markets (Total) Index gained 18.9 per cent for the second quarter, more than double the increase of 9.2 per cent for the HFRI Fund Weighted Composite Index, HFR's broad-based gauge of industry performance. "The hedge fund industry has continued to evolve through the current period of consolidation, and in no place is this evolution more apparent than in funds investing in Emerging Markets," said HFR President Kenneth Heinz. "Emerging Markets hedge funds are now larger, more sophisticated, more strategically diverse, more structurally transparent and better positioned to offer global investors access to dynamic growth opportunities around the world."
By Issac John
© Khaleej Times 2009
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