{
  "id": 11399404,
  "title": "MENA hedge funds lead emerging markets amid global interest rates surge, says HFR",
  "url": "https://urgent.news/2026/10/02/mena-hedge-funds-lead-emerging-markets-amid-global-interest-rates",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-02T08:28:00.000Z",
  "source": {
    "name": "Hedgeweek",
    "slug": "hedgeweek",
    "url": "https://hedgeweek.com/news/mena-hedge-funds-lead-emerging-markets-amid-global-interest-rates-surge-says-hfr"
  },
  "original_language": "en",
  "account": "Hedge funds based in the Middle East and North Africa dominated the performance of emerging markets through August, according to HFR data. The HFRI MENA Index surged 18.7% year-to-date, benefiting from the ongoing tensions in Iran, volatile oil prices, and a sharp increase in global interest rates. Despite uncertainty surrounding the resolution of the Iran conflict, these funds managed to navigate extreme movements in energy markets and the broader financial landscape.\n\nThe HFRI Emerging Markets (Total) Index followed closely, gaining 8.2% over the same period. Japan also showcased strong performance, with the HFRI Japan Index growing 8.8% year-to-date. HFR noted that managers across emerging markets and Asia capitalized on opportunities arising from rising bond yields, geopolitical events, and heightened volatility in technology and artificial intelligence-related equities.\n\nHowever, performance in certain regions was less impressive. The HFRI EM: China Index increased by 2.8% year-to-date, while the HFRI EM: Latin America Index rose 2.6%. In contrast, the HFRI India Index declined by 3.3% over the same timeframe.\n\nThe broader hedge fund industry saw a slightly weaker return, with the HFRI Fund Weighted Composite Index advancing 7.85% through August. The HFRI RV: Yield Alternatives Index stood out as the top-performing strategy area, surging 17.9% during the period.\n\nEstimated assets under management in emerging markets hedge funds hit a record $287.6 billion at the end of the second quarter, while Asian hedge fund assets grew to $152.1 billion, marking the third consecutive quarterly record. Kenneth J. Heinz, HFR's president, highlighted that MENA hedge funds led the way in emerging markets performance through August, as well as Japan's strong gains. Heinz emphasized that the combination of uncertainty and market volatility continues to create opportunities for hedge fund managers, with Asian and emerging markets strategies remaining tactical and adaptable as market risks evolve.",
  "summary": "Hedge funds focused on the Middle East and North Africa led emerging markets performance through August, with the HFRI MENA Index gaining 18.7% year-to-date as managers navigated heightened geopolitical tensions, volatile oil prices and a sharp rise in global interest rates. The performance came as the outlook for an end to the Iran military conflict remained uncertain, contributing to extreme…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}