Sat, Jan 21, 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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised