Emerging-Market Investing -- How the Pros Do It

By Ben Steverman - 2011-12-09T17:28:30Z

Photograph by Stephen Shaver/Bloomberg

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While vetting a Chinese hedge fund, Greg Peterson, director of research at Ballentine Partners, says U.S. tax issues and a lawsuit in Hong Kong were among "a whole slew of things" the fund managers hadn't mentioned. In fact, they were surprised Peterson was interested in such matters. "The assumptions of business practices over there are slightly different." All the issues could be explained in one way or another, but the fund's lack of disclosure sent his firm investing elsewhere.

Read the full special report.