NEW YORK (HedgeWorld.com)–Optima Fund Management LLC expects to launch a dedicated emerging markets fund of funds July 1. The portfolio will consist of managers who invest in emerging markets worldwide and across various asset classes.
According to Optima, a US$3 billion hedge fund group, the fund will allocate to managers who seek low volatility, primarily by using hedged long/short strategies to protect against potential market downturns. The goal is a portfolio that offers diversification from developed markets and shields investors from trends such as the declining dollar and slow global economic growth.
Optima Founder and Managing Member Dixon Boardman said that there are many areas in the world where the economy is growing faster than Europe and the United States. “The case for emerging markets is more compelling today than it has been in nearly a decade,” he said, in a statement. “The Optima Emerging Markets Fund has been created to take advantage of this in a structured way, utilizing effective hedging strategies.”
Some economies are growing at close to double the rates of developed countries, and many experts regard stock valuations in certain markets as undervalued due to excessive discounting for political risk. But emerging markets remain extremely volatile (see , ).