Sun, Oct 22, 2017
A A A
Welcome Guest
Free Trial RSS
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   |   
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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad