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India-focused hedge funds ranked among better performing group
By siliconindia
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Tuesday, 05 October 2010, 18:58 IST |
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Mumbai: India focused hedge funds are among the best performing hedge funds globally and have produced nearly double the returns of the benchmark Sensex this year, according to analysts at Singapore's fund research house Eurekahedge.
India has proved to be a high-beta market for hedge funds and managed to show a stronger growth in assets under management (AUM) when compared with other countries. "Hedge funds are active in Indian equities,? Farhan Mumtaz, Senior Analyst, Eurekahedge. "Funds with global and emerging market mandates have also increased their allocations to India," he added.
Eurekahedge India index was the top gainer among the geographical indices with 5.7 percent gain between January and August. This is higher than the return of MSCI India which was up only 1.8 percent.
Other out-performers among the geographical indices were Latin America (onshore) index with 4.9 per cent gain and Eastern Europe and Russia index that is up 3.7 per cent in the first eight months of this year. The underperforming regions were Australia/New Zealand and Greater China.
According to hedge fund database HedgeFund.net estimate, at the end of August the total assets in hedge funds investing primarily in India's markets were $9.53 billion compared with a peak of $18.74 billion at the end of 2007 and a low of $5.92 billion in the first quarter of 2009.
Average asset under management of an Indian hedge fund is estimated at $65 million by fund researchers. Most of the money (for India-focused funds) is coming from hedge funds, family offices and high net worth investors.