Forbes – 2008 was a bad year for hedge funds that invested in Eastern Europe and Russia, forcing many to abandon the region. A month into the new year, they are still steering clear of the market and waiting for more attractive cheap buys to emerge.

"Most funds are waiting to see what happens, looking for distressed asset opportunities toward the end of the year," said the director of a London-based hedge fund, which has been investing in the region. "Potentially there are quite a few funds that could reorientate toward the region but mostly people are managing redemptions and waiting to see what happens," he told Forbes. According to the fund manager, Ukraine, Russia and Kazakhstan’s industrial and resource sectors were likely to be among the first areas re-entered.

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Tags: eastern europe, forbes, kazakhstan, london, new year, redemptions, resource sectors, russia, s industrial, ukraine