Life has come full circle for India-focused hedge funds whose percentage share in Asian hedge funds (by assets under management) has been growing at a brisk pace since July 2004.
• Assets under management (AUM) at India-focused hedge funds were about US$ 7.3 billion by the end of 2007, compared to about US$ 4 billion recently.
• India-focused hedge funds which were up by as much as 23% in 2010 are down by 5% in 2011.
• Foreign Institutional Investors (FIIs) poured US$ 29.3 billion into the Indian equity market in 2010 and have taken out US$ 2.1 billion in the first two months of 2011.
So why is an economy which has a 330 million strong middle class and is poised to grow at 8% annually falling out of favour with overseas investors?
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