Greg Coffey’s Kirkoswald Asset Management is targeting frontier markets as a top bet for this year, according to a firm executive. These less liquid, higher-risk destinations like parts of Africa and Southeast Asia are drawing attention from sophisticated investors seeking growth beyond traditional emerging markets.

The move signals a strategic shift as global fund managers look for untapped opportunities. Frontier markets, often overlooked due to political or currency risks, can offer higher returns for those with local expertise. Kirkoswald's focus suggests confidence in navigating these complex environments for long-term gains.

Investors should watch how other hedge funds respond to this thesis. Increased capital flows could lift valuations in specific countries but also heighten volatility. Success will depend on rigorous country selection and timing, a hallmark of Coffey’s investment style.