The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Hedge funds: GCA singles out emerging opportunities

Of the 8,000 or so hedge funds globally, around 97% are focused on the US and European capital markets. And although opportunities in Asia, Latin America, and central and eastern Europe are being recognized, with the net amount of money flowing into hedge funds that focus on emerging-market investments rising 13% in 2005 according to Hedge Fund Research, not many investors are sufficiently confident to invest in these regions separately.

Lou Gerken, Gerken Capital Advisors “These markets... do not move in sync. To access cross-border opportunities you need to be there”
Lou Gerken, Gerken Capital Advisors

In any case, it is hard to find managers that have sufficient knowledge of individual countries to be able to take full advantage of the opportunities that lie in them.

Lou Gerken is one manager that evangelizes the value that hedge funds focusing on single emerging countries can create. He founded and is president of Gerken Capital Advisors (GCA), an alternative investment company started in 1989. Since its inception, GCA and its principals have managed and advised $4.7 billion in assets under management, and now run two hedge funds – an India fund and a Greater China fund. A Latin American fund and a Greater Russia fund will be launched soon.

“Investors are aware of the returns that investing in emerging markets can create,” says Gerken. Emerging market growth is three times the rate of G7 GDP growth, and there is less capital competing for investment in these markets.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree