Asia ex-Japan hedge funds have posted the strongest performance worldwide this year, data from research house Eurekahedge shows.
Hedge funds invested in the region are up 7.26 percent year to date, attributing most of their gains to Indian equities, which have risen nearly 27 percent amid optimism surrounding the new government led by Narendra Modi. Hedge funds that invested in India specifically gained around 26 percent year to date, the Eurekahedge report published Tuesday showed.
Funds with a Latin American mandate came in second place, up 5.93 percent. These funds were the star performers during August, returning 2.2 percent for the month. Those that invested in Brazil did especially well as the nation's stock market rallied sharply in anticipation of upcoming elections.
Polls showing that opposition candidate Marina Silva is gaining ground over incumbent President Dilma Rousseff helped push the Brazilian equity index 17.24 percent higher so far this year as investors grow bullish over the prospect of a new government that can turn around the nation's economic fortunes.