Pharo Management and Discovery Capital Management are the two leading hedge funds which endured losses in the previous month’s tumble among emerging markets.
Tensions related to US-China ongoing trade battle, global economy health and Argentina debt crisis triggered by shocking defeat of president Mauricio Macri in primary election have helped get a major sell-off among emerging market assets last month as the investors ran out for a cover.
Bonds and stocks of emerging markets faced worst discharge since the time Donald Trump, the president of the US won election in November 2016, as per a report.
Discovery, based in Connecticut, lost 7.6% last month, as per people familiar with the returns on funds. This takes the fund performance, which relies on emerging markets, to 6% loss for this year. On the other hand, Pharo Management, based in London, saw gains for this year cur down after a difficult August. The Gaia fund of the firm worth $4.7bn lost 5.5% in August, as per people who familiar with the numbers, lowering the gains for this year to around 5%.
Pharo and Discovery both refused to comment about their performance.
In spite of the sell-off in emerging markets, the equities index of MSCI Emerging Markets is up still by around 6% for this year.