INVESTMENT FOCUS-"Go-anywhere" investing transforms volatile emerging markets
* New breed of investors not tied to standard benchmarks
* Preference for funds investing in range of asset classes
* Single-country crises less likely to spell broader contagion
By Sujata Rao
LONDON, July 18 (Reuters) - New types of long-term investors and flexible, "go-anywhere" investing styles are helping transform emerging markets by making the once-volatile sector less prone to the sweeping sector-wide sell-offs common in the past.
Consider recent events. Macedonia and South Africa successfully tapped bond markets on July 17, as buyers turned a blind eye to the ongoing Russian bond rout caused by U.S. sanctions and the bringing-down of a passenger plane on its border with Ukraine.
Similarly, a day after a U.S. court ruling put Argentina on the road to default, fellow emerging market and serial defaulter Ecuador persuaded bond investors to lend it $2 billion.
And the bank crisis and resulting stock market tumble in Bulgaria made barely a ripple in neighbouring Romania or Hungary.
Not so long ago, the sector would have swooned in unison, as during the Argentine debt default in 2001-02, the Russian financial crisis of 1998, and banking crises in Turkey in 2001 and Iceland in 2008. Continuación...