Long/short funds lose previous gains

The number of managers entering the emerging markets hedge fund arena is on the increase due to improving returns.

Emerging markets are traditionally a cyclical asset class and the main problem for investors has been managers who ran funds with a high correlation to the underlying market.

For managers who can break that correlation, capture value on the upside and avoid losses on the downside, emerging markets look attractive.

There are two reasons for the increasing popularity of emerging market h