Hedge funds: GCA ready to launch LatAm fund
Joint venture with local player and a multi-strategy approach.
"Ninety-five percent of hedge funds are focused on G7 countries and have G7 investors, but there’s been a 20-year bull market in the Bric countries and I don’t think we’ve begun to see the flows that we will"
When Euromoney last interviewed hedge fund manager Lou Gerken in June 2006, he was confident that he would be able to open his Latin American hedge fund "soon". A year of contractual negotiations followed, talks with the partner firm in the joint venture are now all but complete and the fund is ready to launch. Gerken is excited to move one step closer to his vision of covering the emerging markets’ brightest hopes. "Ninety-five percent of hedge funds are focused on G7 countries and have G7 investors," says Gerken, "but there’s been a 20-year bull market in the Bric countries [Brazil, Russia, India and China] and I don’t think we’ve begun to see the flows that we will. The aim with Gerken Capital Associates is to have five share classes – India, China, Latin America, Russia, Middle East – so that by the end of this year we’ll have a platform in place whereby investors can rotationally trade between the classes according to their preference.