Hedge funds that invest based on views of the global economic outlook are the only hedge funds to hit double-digit returns so far this year. This from the Financial Times:

These so-called macro hedge funds, which attempt to identify extreme valuations in stock markets, interest rates, foreign exchange rates and commodities, have shown returns of more than 12 per cent this year, outperforming the S&P 500 index by about 17 per cen.

To identify extreme price valuations, macro hedge fund managers generally employ a global approach that concentrates on forecasting how global macroeconomic and political events affect the valuations of financial instruments.

Worries about the state of the US and world economy show few signs of easing. A recent survey of more than 70 US hedge fund managers and their advisers has found that most have a broadly pessimistic view on the prospects in 2008 for the country’s economy, which 80 per cent expect to be flat or in recession by the end of the year. Many expect the Federal Reserve to raise interest rates rather than lower them further.

Tom Dyson think he may have found the next great emerging market.

It’s a landlocked country with low taxes. So it serves as a “trampoline” for merchandise into other countries. That should make it a very attractive place for capital, and it’s major city is the second-largest free-trade area in the world, after only Hong Kong.

Read on here to find out how to profit from this fantastic place to invest.