Hedge fund investors are shying away from emerging markets, showing increased reluctance to hold risky investments.

Emerging-market hedge funds suffered a net outflow of $1.5 billion in the second quarter, according to Hedge Fund Research Inc. Emerging-market funds have experienced outflows in seven of the last eight quarters.

Adding investment losses to the equation, the total amount of money invested in emerging-market hedge funds dropped by $3.2 billion in the second quarter, to $95 billion.

Hedge funds as a whole enjoyed a net capital inflow of $9.6 billion in the quarter.

Emerging-market hedge fund redemptions were concentrated in Russia and emerging Asian economies.

Hedge funds investing in Latin America and the Middle East saw capital inflows.

“Changes in global growth expectations, prospective currency volatility and commodity-specific market influences have resulted in a near-term decrease in investor risk tolerance for emerging-market hedge fund exposure,” Kenneth Heinz, president of Hedge Fund Research, said in a statement.

Emerging-markets guru Mark Mobius doesn’t see any reason to shy away.

“Valuations in emerging markets are in the middle of the range," Mobius, executive chairman of Templeton Asset Management, said at a conference in Thailand, Reuters reports. "Things are not so cheap as they were but there are still a lot of opportunities. Things look pretty good for next year.”