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Money managers under the microscope

from Global Investing:

Time up for emerging markets?

Well, not in the long-run, no. You would be hard pressed to find an economist, investor or even politician who does not reckon the global shift in growth to Asia and Latin America is going to be the story of the coming decade, century etc.

But in the shorter term, strange things are happening. MSCI's benchmark emerging market stock index is barely in the black for the year. Even more surprising is that it is underperforming its developed market counterpart.

Many  economists and investment strategists are still beating the drum for emerging markets and a Reuters European Funds Summit in Luxembourg this week heard numerous cases of retail investors beginning to move into the sector, joining their institutional brethren.

The problem is that all this demand can transform itself into too much money chasing too few assets.  LGT Capital Management insists that we are not there yet, but used the "bubble" word during a meeting with Reuters reporters at the summit.

from MacroScope:

Press that reset button…

resetbuttonMohamed El-Erian, CEO and co-CIO of the world's biggest bond fund PIMCO, says 2010 is the beginning of the multi-year resetting of the global economy.

In the period up to the crisis, there were two labels that dominated the world -- Great Moderation and Goldilocks. Not too cold, not too hot. 2009 was about crisis management -- the label was 'whatever it takes'. The 2010 label is post-crisis. It's not just about post-crisis. In our view, 2010 is about multi-year resetting of the global economy. It will be a bumpy journey to the new normal.

from Global Investing:

RIP 2008-2009

It was down, down, down in 2008 and up, up , up in 2009. So what will 2010 bring?

Year

Morning line-up

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Hedge fund stories from the past 24 hours from Reuters and elsewhere:

rtxcg5sHedge critic may get SEC risk post - NY Post

AIG chief defends holiday – Reuters

When Chanos warned the G7 – and no one listened – Seeking Alpha

Emerging market funds lead the pack – Hedge Funds Review

from Global Investing:

Can domestic demand boost African markets? Duet’s Salami talks to Reuters Television

Direct and indirect foreign investors fled from Africa as the credit crisis sparked a flight to safety, or at least familiarity, but Ayo Salami, manager of the Duet Victoire Africa Index fund believes domestic demand can step in to underpin growth.

from Global Investing:

The final frontier market

As a fallout in emerging markets -- once hailed as a safe-haven from the global financial crisis -- gathers pace, asset managers are scrambling for newer markets.

What about North Korea? The Stalinist country boasts large untapped natural resources with deposits of gold, coal, zinc and other minerals. It has virtually no capital markets and its banks are all state-owned -- making it a true safe haven from the global financial crisis.

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