Total hedge fund assets invested in emerging markets fell by $11 billion during the third quarter, according to HFR's third-quarter emerging markets industry report.
Total assets invested in emerging markets were estimated to be $187 billion as of Sept. 30. That figure is relatively flat (up 1.7%) from the end of 2014. Year-to-date net outflows were estimated to be $600 million through the first three quarters.
Hedge fund capital invested in China fell 9.9% in the quarter to $51.5 billion – the largest quarterly decline since the fourth quarter of 2008.
“Emerging market hedge fund performance reached a critical inflection point to conclude the third quarter, as the relative divergence between favorable investor sentiment towards developed markets and a pessimistic outlook towards emerging markets reached extreme levels,” said Kenneth J. Heinz, president of HFR.