Africa and the Middle East: FT’s Next Investing “Hot Spot”

Today’s Financial Times points out the increased interest in North African and Middle Eastern stock markets, with several well-known funds aiming to invest up to US$1 billion in the region. While we have been following these markets for some time now, the reports anoints the markets as the “next investing hot spot.” As the article notes:

“…In addition to BlackRock, the US-based investment manager, which launched a Middle East North Africa Opportunities hedge fund on 1 December. Permal, the hedge fund of funds group, will shortly begin marketing a new one, called Silk Road, which will invest in North Africa, the Middle East and the neighbouring countries leading to Asia.

…T Rowe Price, the US-based mutual fund group, three months ago launched an Africa & Middle East fund, which has attracted more than $140m in investors’ money. The strong start for the fund, which has had little marketing, indicates that US retail investors have an appetite for the region. It is believed to be the only such fund available to US investors, although there are some – New Star launched one last month – available to European investors.

The T Rowe Price fund will have a relatively concentrated portfolio of 40 stocks and initially invest in 11 of the more developed markets in the region – such as Nigeria and Egpyt – and then expand to others, such as Botswana and Tunisia.

Emerging markets mutual funds have historically had little or no investments in Africa and the Middle East, but have begun to lift their holdings there. Some of the African stock markets have been among the best performing in recent year.”

This entry was posted on Sunday, December 30th, 2007 at 3:39 pm and is filed under Uncategorized.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.