Attracting Middle Eastern Investment

JULY, 2009

Cash needy investors are hitting the hedge fund industry hard and many managers are expecting significant redemptions, at least for the first half of 2009.  In exclusive interviews with Alternative Latin Investor, Brazilian fund managers have spoken about their concerns about surviving the current worldwide economic downturn. Otavio Vieira of Safdie Private Banking expects to see a large contraction affecting Brazilian funds “Assets under management will drop a lot, in 2010 there will be perhaps only 30 to 40 percent of Assets under management when comparing with 2008 and this is causing many funds to close down”.  
Hedge Fund

With investors pulling out of funds as they look to liquidate their assets, Latin American Hedge fund managers are actively seeking new sources for potential clients. In the pre-credit crunch days Latin America’s commodity rich nations were beginning to attract serious interest 

through BRIC and Agro funds. However, rather than waiting for commodities to rise again Latin American fund managers could find that looking eastwards is a source of customers that could bear fruit. Alternative Latin Investor has been speaking with several Fund managers based in the M

iddle East to find how their Latin counterparts can attract valuable new clients in the region.

To date, the direct effects of the financial crises experienced by most developed economies in the Middle East have been relatively mild, when compared with other regions throughout the world, as banks and investment companies in the Middle East were not large holders of sub-prime mort

gage backed securities. However, regional sovereign funds have taken some losses on their investments with global financial institutions.  Additionally, Arab stock markets have not been immune from the Credit Crunch with stock indices in Gulf Cooperation Council (GCC) countries showing significant declines of between 30 – 60% in the final quarter of 2008. According to the US based Council on Foreign Relations early analysis points to sovereign funds with a high allocation into equities, emerging mar.....




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Comments

- (7 months ago)
Yes This website is really very good I read articles of this website and provide me update detail of all real estate information.

- (7 months ago)
Yes this is really a good approach.

- (19 months ago)
Attracting investors of any type is the most difficult challenge facing many Hedge funds in the current climate but to do so in the Middle East could mean establishing an office in the region.

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