Top Hedge Fund Says ‘Violent’ Emerging-Market Rout Is Coming
- Man Group Plc is the world’s largest public hedge fund
- Prepare for giant liquidity drain from the US, Man Group says
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The hedge fund that beat 99% of peers last year with a bearish stance on emerging markets says the selloff since February has proven its skepticism right and risky assets will face even bigger losses later this year.
Man Group Plc, the world’s biggest publicly listed hedge fund, told Bloomberg in February that the rally in emerging markets between October and January wasn’t justified by economic fundamentals and was set to reverse. The prediction proved correct, with sovereign dollar bonds from emerging markets handing investors a 2.2% loss since then, and the benchmark MSCI emerging-markets equity index falling almost 7%.