Emerging Hedge Fund Managers Outperform Peers

Hedge funds launched by first-time managers posted better returns than funds launched by established firms, notes Preqin in its recent report.

Preqin’s report, however, points out that despite such superior returns, institutional investor interest in emerging managers continues to decline.

Emerging hedge funds post higher returns with greater volatility

According to the Preqin report, the emerging market long/short fund launched since 2007 delivered annualized net returns of 8.80% in the first three years of trading on average, while the newly-launched funds managed by established firms could generate 5.38% only. However, the first-time funds exhibited more volatility than funds managed by experienced firms.

Preqin’s report points out that there has been an overall reduction in appetite for emerging managers among institutional hedge...