Emerging market hedge funds had a rough 2011. In such a macro-driven environment, emerging markets responded faster and harder than their developed market counterparts despite the bulk of risk emanating from outside their domestic markets.
The corresponding underperformance by hedge funds targeting this sector has reawakened the focus on downside protection. However, with valuations currently at low levels, a respite in those macro risks should benefit those with the conviction to stand by their
The week on Risk.net, September 8-14, 2018Receive this by email