Fierce Finance – Hedge funds bailed out of emerging markets in September, driven in part by heightened redemptions.
That helped spark a large decline in most of the emerging market indexes. The Barclay Emerging Markets Index, for example, fell nearly 8 percent in September, the worst since October 2008, according to TrimTab. That all occurred in tandem with $5 billion in hedge fund redemptions. Had some of these funds been able to stay invested, they would have fared okay, thanks largely to exchange traded funds (ETFs), which enjoyed massive inflows recently.