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Abstract
Funds investing in emerging markets over the past year have enjoyed steady, positive returns. As a result money has flowed into the sector and managers are confident that success will continue for some years yet. The consensus is that emerging markets have changed significantly since the early years of the millennium when the strategy first became popular among hedge fund managers. If one looks forward at the emerging markets and what's going to work it's quite different from what has been going on, says Prodigy Capital partner David Robinson. He believes this is due to the ever-accelerating pace of development within countries. Managers acknowledge that China's dominance is evident although it does not necessarily provide the best returns. Managers all expect the success of emerging markets to continue for some time yet, although estimates vary as to how long the high returns seen during the past few months will continue.