According to fund tracker EPFR Global, fund managers and other investors yanked $5.45 billion from emerging markets funds in China, India, Brazil and elsewhere in the second week of February and placed it in equity funds of advanced economies -- their biggest weekly inflow in more than 30 months.Developed market funds recorded their seventh straight week of inflows in mid-February -- with European equity fund flows hitting 41-week highs. So far this year, investors have committed $47 billion to U.S., European, Japanese and global equity funds -- $29 billion of it into the U.S alone.
“When managers left emerging markets, they crowded into crude oil, with net long positions reaching a notional $21.5bn, up from $14.2bn in November.”The one-month rolling emerging market exposure for global macro funds fell as managers began to exit the sector. Billion dollar emerging markets hedge funds, including Brevan Howard Asset Management and BlueCrest Capital Management, have made losses in 2011. In the year to date, Brevan’s Emerging Market Strategies Fund fell 2.7% to Feb 11 and BlueCrest’s fund fell 1.1% in January.”