Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Industry Updates

Peregrine’s South African hedge funds return 2.09% (before fees) in April, 4.70% YTD

Thursday, May 05, 2011
Opalesque Industry Update - According to Warren Chapman at South African prime broker Peregrine Securities, South African hedge funds returned on average 2.09% in April 2011 (asset weighted, before fees) and 4.70% YTD, L/S equity hedge funds 2.38% (2.82% YTD) and market neutral equity hedge funds 0.85% (4.27% YTD).

Comparatively, the Dow Jones Credit Suisse Core Hedge Fund Index was up 1.44% (est.) in April and +2.62% YTD, while the L/S Equity index was up 1.53% and 3.47% YTD. And the Eurekahedge Emerging Markets Hedge Fund Index returned 1.77% (est.) in April and 2.81% YTD.

Peregrine Group runs a Fund Platform for South African hedge fund managers that includes14 funds with assets under administration of R3.7bn (US$0.55bn).

Performance in 2011 continues the trend displayed in 2010, commented Chapman, with the average market neutral fund returning solid if uninspiring returns at very low levels of volatility, with long-short funds naturally displaying better returns with slightly higher volatility on generally positive equity markets. Meanwhile, market indices show that resource stocks continued to underperform significantly, ending flat on the month while financials (2.9% and 4.2% YTD) and industrials (4.3% and 5.2% YTD) ended strongly. All the sectoral indices fell sharply mid-month but recovered quickly, with only the resource sector failing to sustain the recovery to month-end. The All share index ended April with 2.2% (3.2% YTD, 19% in 2010).

Equity markets globally remain in a bullish trend, although perhaps with diminishing enthusiasm. A number of factors loom large in considering the prospects for the continuation of the equity bull market; one being inflation, the other being the end of quantitative easing from the Fed. According to Peregrine, the immediate consequence of the rates decision was a dollar sell-off, with the rand price of the US currency dropping below R6.60 late last week. The consequences for other asset classes are unclear, but there is currently a common perception that developments in the US economy over the next few months will be critical.

South Africa’s media have been reporting over the last few weeks that the changes to Regulation 28 of the Pension Funds Act, effective from July 1st, could result in an eightfold surge in assets under management of hedge funds – as one of the changes will mean that institutional and retail investors will be able to invest up to 10% of their assets in hedge funds. The industry currently manages around R30bn. Meanwhile, South Africa is reportedly looking at "interventions" to improve regulation of hedge funds.

B. Gravrand


Recent South Africa-related article:
Opalesque Exclusive: A holistic offering from administrators IDS Source

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1