ABSTRACT
More sensitive in such markets tend to be funds that have primary exposure to the various emerging markets, which historically tend to be more volatile and sometimes aff ected by the overall economic circumstances in the developed economies. Our interest in this study is in traditional and hedge fund investments dedicated to emerging markets around the globe, the number of which has increased drastically over the past few years. According to HFR† AUM in the hedge fund industry dedicated to emerging markets grew from a little over $100 million in 1990 to over $100 billion in the beginning of 2008. Further development of the BRIC‡ economies as well as of other emerging markets such as Mexico and Korea attracted a number of investment managers to implement various hedge fund strategies for their investors. e number of hedge funds grew
signifi cantly. Performance has been outstanding for the most part of the previous years. However, all investors including hedge funds are impacted by the regional and global economic conditions and sometimes are subject to criticism as whether they are the cause or the victims of such conditions (Fung et al., 2001).
