In the wake of the Nasdaq collapse a decade ago, a Goldman Sachs (GS) analyst coined the term "BRIC" (Brazil, Russia, India and China) and made the case for investing in these fast-growing economies. The research ushered in a true golden age of emerging markets investment that few could have imagined back when Cisco (CSCO) and Microsoft (MSFT) were seen as the only stocks one needed to own.

For many, such far-flung locales quickly went from being esoteric speculations to dominant portfolio holdings. The story was simple: Emerging markets were growing faster than developed markets like the U.S., Japan or Europe. And with the U.S. dealing with everything from terrorism to a weakening currency, investors saw emerging markets as the place where money would increasingly be made.

And for a long time it was. For the 10 years ending 2010, the MSCI Emerging Markets Index, tracked by funds like iShares MSCI Emerging Markets (EEM), gained over 13% a year, while the S&P 500 was flat. From 2005 to the end of 2010, assets invested in the fund grew by over 362%, even up to late last year, when emerging markets again saw record inflows.

As we've written in the past the hottest and most popular investment options can often serve as great contrary indicators. The Nasdaq posted double-digit returns for five straight years before most investors finally bought into growth mutual funds in February 2000. The index peaked at 5408 one month later.

All of which makes the recent underperformance of so many previously leading emerging markets so notable. Weeks before violent unrest rocked Tunisia and Egypt, emerging market stocks had already begun to lag far behind that of their developed counterparts. Over the past three months, developed markets indexes like the S&P 500 or funds like iShares MSCI EAFE Index Fund (EFA) are beating emerging market stalwarts like iShares Brazil (EWZ), Vanguard Emerging Markets (VWO), iShares China (FXI), PowerShares India (PIN) and iShares Emerging Markets (EEM) by anywhere from 10% to 25%.

Emerging Markets are Slipping Behind

SPDR S&P 500 (SPY) vs. iShares Emerging Markets (EEM), iShares Brazil (EWZ), iShares China (FXI), PowerShares India (PIN) 3 months

Investors are starting to run for the exits as well. Last week, global fund tracker EPFR reported that $3 billion was pulled from emerging markets stock funds, adding to the $7 billion withdrawn the previous week.

After a decade of torrential growth, there's plenty to suggest the emerging markets profit train might finally be headed off the tracks.

Jonathan Hoenig is managing member at Capitalistpig Hedge Fund LLC.