Evaluating Hedge Fund Strategies in Emerging Markets: An Indian Perspective

Author(s): Bindavasini Choudhary and Dr. Jyoti Sah

Abstract:

Hedge funds have increasingly turned to emerging markets in search of higher returns, driven by rapid economic growth, demographic trends, and market inefficiencies. These markets offer significant opportunities for strategies such as long/short equity, global macro, and arbitrage. However, the volatility, political instability, currency fluctuations, and regulatory challenges inherent in emerging markets present substantial risks. Successful hedge fund performance in these regions requires a deep understanding of local market conditions, effective risk management techniques, and the ability to respond quickly to global economic changes. Both primary data, including interviews and surveys with hedge fund managers, and secondary data, such as market reports and academic studies, highlight the complexities of investing in emerging markets. While high returns are possible, the performance of hedge fund strategies in these markets is contingent on balancing potential rewards with the risks posed by market instability and external factors. Under this study the researchers explore the factors influencing hedge fund performance in emerging markets offering insights into the opportunities and challenges faced by hedge funds operating in these dynamic regions.

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Pages: 95-100     |    2 View     |    0 Download