Alternative EM funds continue to post strong growth, ML Capital finds

As expected alternative funds posted solid growth in the first part of 2013 underpinned by strong emerging markets, according to the quarterly Alternative UCITS Barometer published by ML Capital which analyses 49 investors who collectively manage over $85bn.

The quarter marked the tenth consecutive of increased allocations to Global Emerging strategies and 98% of surveyed investors hold or increase allocations to Global Long/Short.

Majority of investors opted for Global Strategies, 65% of all investors to increase allocations to Global Emerging Markets and 51% of all investors are looking to increase allocations to global Long/Short.

ML Capital also found a Japanese Revival; 93% of investors show faith in Asia’s second largest economy.

Meanwhile, investors are slow to react as CTAs Post Strongest Returns. Investor appetite wained despite the strongest period for CTAs in the past 5 years and many quant investors still believe in further gains for CTAs and Systematics in 2013.

John Lowry, chairman of ML Capital said: “Sentiment has been very clear; investors have begun to make a big return to equities and intend to continue to do so in the coming quarter, although seemingly some are finding it difficult to decide which region to allocate.  It’s clear to all that there still remains an air of diffidence amongst the majority of investors, even as financial markets begin to normalise somewhat.”

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