LATEST REPORT: THIRD QUARTER 2025
Resourceful investment managers watch for rewarding opportunities in emerging markets. Along with the potential for a high return on investment, this category of fund comes with relatively high risk. This HFR Industry Report provides analysis of the world of emerging market hedge funds.
Results often vary by region in this category. Index performance, risk/return analysis, and more, can help give investors and managers gain insight into forming their own selective approach to the Emerging Markets.
HFRI MENA Index leads regional performance YTD;
Improving trade, rates, falling geopolitical risk contribute to EM gains;
Asian hedge fund industry AUM rise to record
CHICAGO, (December 29, 2025) – Asian and Emerging Markets hedge fund performance accelerated into 4Q25, navigating a sharp correction in cryptocurrencies which was offset by a powerful combination of factors including expectations for falling interest rates, improving global economic outlook, progress on trade/tariff negotiations and optimism over near-term resolution of ongoing military geopolitical conflicts. EM hedge fund performance advanced into mid-4Q, led by the HFRI MENA Index, which has surged +20.5 percent YTD through November. The overall HFRI Emerging Markets (Total) Index vaulted +16.8 percent YTD through November, on pace for the strongest calendar year gain since 2017, as reported today with the releases of the HFR Asian Hedge Fund Industry Report and the HFR Emerging Markets Hedge Fund Industry Report from HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry.
Stay up-to-date on key trends affecting the hedge fund industry. HFR’s specially-priced bundled subscription includes quarterly publications of HFR Global, Asian, Emerging Markets, and Market Microstructure Reports. The ultimate resource available for the industry insider.
