Hedge Funds

Emerging markets fail to lift all boats


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