Falling U.S. bond yields and a weaker U.S. dollar are helping to promote the recovery of emerging market-focused hedge funds. Previously, some managers, including Pharo Management, with assets of $12 billion, got into trouble after a difficult start this year. According to data from data group Eurekahedge, emerging market funds rose 1.9% last month, ahead of broader hedge funds that rose 1.1%. This has caused them to rise by 5.4% this year, still lagging behind the average hedge fund return of nearly 8%. Emerging market managers have been benefiting from the recent decline in U.S. Treasury yields.