Emerging-market funds turn away new clients

London

CHEAP money may have buoyed emerging-market macro hedge funds towards their ninth straight annual advance, but this does not mean that investors are expecting an exodus as the world's central bankers start turning off the taps.

Demand for these funds remains so brisk, in fact, that some are turning new money away. Pharo Management (UK) closed one of its developing-economy macro pools to new clients after it made 25 per cent this year till September. And Antoine Estier raised twice what he expected for his new Amia Capital venture, which invests across markets, closing part of the fund to additional clients, according to a person familiar with the matter.