Thu, Mar 23, 2017
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. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He