Sun, Feb 1, 2015
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. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would