Performance of Emerging Market Hedge Funds in Their Geographical Focus

21 Pages Posted: 11 Sep 2008

See all articles by Juha Marko Kotkatvuori

Juha Marko Kotkatvuori

affiliation not provided to SSRN

Jussi Nikkinen

University of Vaasa - Department of Accounting and Finance

Jarkko Peltomaki

University of Vaasa

Date Written: August 25, 2008

Abstract

Emerging market hedge funds are an asset class which does not seem to outperform the market benchmarks although a significant amount of the funds show superior performance. In this study, we examine whether funds selected on their geographical focus are able beat their benchmarks, and show aggregate market timing ability in their focus market. Our results suggest that emerging market hedge funds are able to beat their benchmarks but do not show market timing ability. In conclusion, emerging market hedge funds are an asset class in which unskilled managers seem to infiltrate to earn fees but investors can mitigate this problem by investing in emerging market hedge funds which have a defined geographical focus.

Suggested Citation

Kotkatvuori, Juha Marko and Nikkinen, Jussi and Peltomaki, Jarkko, Performance of Emerging Market Hedge Funds in Their Geographical Focus (August 25, 2008). 21st Australasian Finance and Banking Conference 2008 Paper. Available at SSRN: https://ssrn.com/abstract=1256283 or http://dx.doi.org/10.2139/ssrn.1256283

Juha Marko Kotkatvuori (Contact Author)

affiliation not provided to SSRN ( email )

Jussi Nikkinen

University of Vaasa - Department of Accounting and Finance ( email )

P.O. Box 700
FIN-65101 Vaasa, FI-65101
Finland
+358 6 3248541 (Phone)

Jarkko Peltomaki

University of Vaasa ( email )

P.O. Box 700
Wolffintie 34
FIN-65101 Vaasa, FI-65101
Finland

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