Sat, Apr 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

South African hedge funds face regulatory change as their industry grows

Tuesday, October 02, 2012

Beverly Chandler, Opalesque London: South African fund group Novare has published its latest Hedge Fund Survey examining the growth of the hedge fund industry across the country to June 2012. Their findings include an observation that the industry underwent some 'material changes in a tumultuous year’ when regulatory change was the backdrop to some interesting and varied investment returns.

According to Novare, assets in hedge funds in South Africa reached R33.6bn ($4bn), an increase of 6.9% over the years, with the bigger managers getting bigger, resulting in 46.2% of industry assets sitting with managers with assets over R2bn ($0.24bn). The increase in assets was dominated by returns rather than new capital inflows.

While the majority of assets are with funds that have a track record of over five years, 14 new funds were launched between 1 July 2011 and June 2012 with equity long/short dominating the strategies available. Of the new funds, 10 were launched by companies that already manage hedge funds.

When asked where they thought new assets might come from, South African hedge funds in the main, at 53.8%, believed that it would be from pension funds through funds of funds.

In terms of performance, larger hedge funds in South Africa achieved better returns with funds with over R1bn ($0.1bn) achieving returns of 16.1%.

Novare concludes that the fledgling hedge fund industry in South Africa is......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably