Economics
Fortress Says Emerging Markets Bear Slump to Rival 1997
- Hedge fund sees `contractionary cycle' for at least 18 months
- Fortress Convex Asia fund led by Dredge rose 3.2% in August
This article is for subscribers only.
Fortress Investment Group LLC told investors that the emerging markets are at a beginning of a bear market that could rival the Asian financial crisis of 1997.
The sell-off in emerging markets, which began in June, has led to a credit contraction that will last until at least March 2017, according to a letter to investors in Fortress Convex Asia Fund Ltd., signed by Singapore-based Chief Investment Officer David Dredge, and fund co-managers Nicholas Heaney and Andy Wong. Fortress said it used past economic cycles as a guide in evaluating the current market.