It’s not just ordinary investors who run for the exits when emerging markets become wobbly. As my colleague Shuli Ren pointed out on Wednesday, in the last month hedge funds “sold down their positions in emerging markets to levels last seen in August 2015.”
Bailing out of a roller coaster midway through the ride is never a good idea. The same could be said about emerging markets right about now.
Nir Kaissar is a Bloomberg Opinion columnist covering the markets. He is the founder of Unison Advisors, an asset management firm. He has worked as a lawyer at Sullivan & Cromwell and a consultant at Ernst & Young.