Understanding Emerging Market Hedge Funds

Ryan Hoadley is a graduate of the University of Michigan with a BBA from the Stephen M. Ross School of Business. During his time at the University of Michigan, he was elected president of Delta Sigma Pi business fraternity and selected as a career counselor. Ryan Hoadley now works as an analyst for a New York hedge fund.

The term hedge fund is frequently mentioned in the world of finance; one popular type is what is known as an emerging market hedge fund. Specializing in investments in countries with emerging financial markets, emerging market hedge funds include a wide range of nations. According to economic statistics, only about 20 percent of the world’s nations are considered emerging, while comprising nearly 80 percent of the global population.

Emerging market hedge funds come with great risk, but great potential for return on investment as well. However, one of the caveats is that hedge funds, including emerging market hedge funds, are not regulated by the U.S. Securities and Exchange Commission, which means they are only open to a certain range of investors. Oftentimes, hedge funds require investors that have a net worth of more than $1 million and have extensive experience in the financial sector.