Political risk analysis is a growing business, both inside
and outside funds, as global uncertainty grows
Wherever they invest - in emerging markets, commodities,
currencies or even the world's biggest stock markets - hedge
funds are facing more uncertain terrain than ever before.
Against a backdrop of global terrorism and ongoing war in the
Middle East, the list of potential minefields is growing:
Iran's drive to attain nuclear capabilities and the possibility
of a U.S. military response, a wave of populist leaders rolling
into power in Latin America, tensions between China and Japan,
and a chill in relations between Russia and the United
Known for their savvy market insight, hedge funds might be
expected to be able to profit from the volatility that such
unease presents, and in many cases they do. "Hedge funds are
opportunistic in the sense that they can take advantage of
instability," says George Friedman, chief...