Hedge fund Carrhae Capital is launching a new $700 million long-only strategy in September, explicitly excluding China exposure, driven by demand from US investors whose benchmarks now omit the country. This initiative reflects a growing trend among institutional investors to de-risk from China within their emerging market allocations.
Carrhae Capital's plan to launch a $700 million long-only emerging markets fund in September, explicitly excluding all China exposure, is a direct response to shifting institutional investor mandates. This move is not a tactical market call by the fund, but a structural reaction to demand from US investors who have formally altered their portfolio benchmarks to remove China. The new strategy will be carved out of the firm's existing $2 billion long-only EM fund, illustrating a tangible reallocation of capital. This development provides a concrete data point for the growing trend of de-risking from China and the establishment of a distinct 'EM ex-China' asset class, likely driven by geopolitical and regulatory risk concerns. The firm's efforts to raise additional cash for both the traditional and the new ex-China fund indicate it is positioning to cater to a bifurcated client base with divergent views on China's role within emerging market portfolios.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
mixed
Sentiment Score
0.00
