The Chicago-based group said the growth had been led by hedge funds invested in Russia and Latin America, with total capital invested in Latam-focused hedge funds increasing by $6.3 billion in 2016 and the assets of Russia and Eastern Europe-focused funds up $2.5 billion.
"Strong performance gains, specially focused on Latin America and Russia/Eastern Europe, contributed to this growth as investors positioned for the impact of divergent monetary policies in US and Europe on emerging markets," HFR said.
The laggard last year was Asia, with total capital invested in regional hedge funds declining by $4.4 billion, according to the report.
(Reporting by Sujata Rao; Editing by Gareth Jones) ((firstname.lastname@example.org; 44 20 7542 6176 ; Reuters Messaging: email@example.com))
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