Sat, Jul 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

South Africa's hedge fund landscape driven by institutional demand

Thursday, December 06, 2012

amb
St John Bungey
Bailey McCann, Opalesque New York:

South Africa has long been considered one of the less risky, more defensive emerging market plays for investors. The country offers a diverse economy, and relatively strong exports that are not solely reliant on a specific natural resource. These themes extend into its growing hedge fund industry, which saw early interest from institutions through the fund of funds structure. Taken together, the needs of institutions and fund of funds have institutionalized this market early, making new entrants organically less risky and lower in volatility if they wish to respond to the expectations of investors in the country.

Participants at our recent Opalesque South Africa Roundtable discussed what this means for their funds and also the future of the hedge fund industry in South Africa. "Everybody wants 5% or 10% on a predictable basis rather than 30% or 40% in a good year and then lose 15% in a bad year," says St John Bungey, Chief Investment Officer, Blue Ink Investments. He notes that while more diversification and indeed, more risk might be desirable for other industry professionals in the country, funds have instead opted for the uniformity demanded by institutional expectations.

Bungey argues for a return to co-investment as a means of easing diversity back into the marketplace. Lee Dalley of Skybound Capital, noted that more inve......................

To view our full article Click here

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: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe