2010 Key Trends in Latin American Hedge Funds
The Latin American hedge fund sector is one of the fast growing segments of the global hedge fundindustry. Over the last decade, the total number of hedge funds in the region has increased four -foldwhile the assets under management has grown by nearly 25 times. Currently, the size of the LatinAmerican hedge fund industry stands at US$60 billion.Industry assets witnessed incremental growth in the 2004±2007 period, registering a three-foldincrease over these three years. This tremendous growth was underscored by the performance of the
Eurekahedge Latin American Hedge Fund Index
, which gained 103.23% over the period. The industrywitnessed a downturn during the credit crunch and the subsequent financial crisis; however,managers delivered admirable downturn protection throughout this period withan average loss of only4.93% at a time when the average global hedge fund was down 10.78%. Assets under managementfell to US$39.3 billion by March 2009 before posting a strong recovery in the last three quarters of 2009.Figure 1 shows the growth in the Latin American hedge fund industry since 2000.
ndustry growth over the years