Hedge funds eye significant opportunities in Asian emerging markets

Emerging Asia offers a wealth of opportunities for hedge funds managers but some investors shy away from the volatility. Hedging is hampered by a lack of market depth and developing capital markets.

Emerging markets as a focus for hedge fund investment have increased in importance in recent years.

Emerging Asia is of particular interest for many managers. The sustained economic growth in countries such as China is starkly contrasted with the recent declines or stagnation in more developed economies, leading many to think the future of investment must surely be in this region.

Investors in hedge funds focusing on emerging Asia need to be wary of the risks. Emerging markets are notoriously