Posts Tagged ‘Emerging Markets’

Why Invest in Emerging Markets?

Mid-sized, privately owned distressed securities investment firm Contrarian Capital Management, LLC, conducts its business on a global scale. Based in Greenwich, Connecticut, with additional offices in Sao Paulo, Paris, and Hong Kong, it allocates many of its resources towards the exchange of distressed securities in emerging markets. Contrarian Capital employs several emerging market experts to manage international portfolios and research trends and investment opportunities abroad.

Characteristics of emerging markets include a basic, though underdeveloped, financial infrastructure, an economy characterized by brisk economic growth, and industrialization. Although the largest emerging markets are represented by China and India, Brazil and Russia are not far behind. Despite the inherent risk of investing in developing economies, investors have begun to focus heavily on these markets because of their potential for high returns on investment. In Q1 of 2011, for example, hedge fund capital in emerging markets achieved a record high of over $120 billion, which has increased steadily ever since.