Sat, Oct 10, 2015
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

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. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  4. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  5. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with