Marketing analysis report - Essay Example

Unlike other hedge fund strategies, Emerging market is marked geographically where investment is done in a market that has potential of growth. Even though it has been adopted by many investors, it has a couple of disadvantages. For instance, the cases of inflation or political instability may result to very poor returns to the investors. Another strategy that is close to emerging market is emerging market stock. This is different to the emerging market because its existence is through the emerging market mutual funds.

For the past decade, emerging market mutual funds has lost investors to the emerging markets, for example, the pension funds by the institutional investors. The main reasons for the gained popularity of emerging markets are discussed below in the growth and benefits of emerging markets hedge funds. Despite the fact that of the world’s nations, emerging markets have a percentage of only twenty; emerging markets have still experienced remarkable growth. This is because 20% of the world’s nations constitute the 80% of the world population (Barclay Hedge, 2013 p. 1). Since emerging markets are defined by its nature of growth in terms of industrialization and business, the chances of increased returns to the investors is quite, therefore many investors are adopting this strategy.

As mentioned earlier, the emerging markets as an investment strategy has gained popularity over emerging market mutual funds since it is not only tied to bonds but also permits investment on real estate among other investments. Due to this advantage, it has really gained popularity among many investors. For instance, in the beginning of the year 2008, it is clear that over nine billion dollars were spent in the new assets. In addition, the average returns received annually by many firms were above average by 25% (Alpha Calling, 2013 p. 1). Since emerging markets are characterized by unpredictability in terms of inflation or the