Hedge Funds

Emerging markets fail to lift all boats

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While many emerging market funds look set to close out 2005 with solid returns, not all such strategies have been able to bring home the bacon this year.

Greenwich, Conn.-based Gramercy Advisors, which invests in emerging market distressed debt, is poised to turn in its first year of negative performance since inception in April 1999, a situation that may owe more to timing than to skill.

The $1 billion Gramercy Emerging Markets Fund lost 3.27% in November, leaving the fund's year-to-date performance at negative 4.97%. That compares to the 14.59% gain measured by the CSFB/Tremont HEDG Emerging Markets index