India hedge funds perform best on Modi factor

[SINGAPORE] Hedge funds investing in India have become the world's best performers this year on expectations that Prime Minister Narendra Modi will revive Asia's third largest economy.

The funds investing in the South Asian nation have returned 26 per cent this year through July, according to Eurekahedge Pte. That compares with an average 3.5 per cent gain for those investing in Asia, 1.9 per cent for Greater China, 1.2 per cent for Japan, 3.8 per cent for North America and 1.1 per cent for Europe, the Singapore-based data provider said.

India-focused hedge funds are set for the strongest return in five years after Modi secured the nation's largest election victory since 1984 in May. The pri…