Thu, Jun 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Peregrine Prime South Africa hedge funds added 2.55% before fees in March

Thursday, April 08, 2010
Opalesque Industry Update - South African equity-centric hedge funds forged ahead in March as the JSE All Share Index went above 29 000 for the first time since mid-2008, according to funds with Peregrine Prime, a provider of wealth and alternative asset management solutions in South Africa.

Before fees and on average, hedge funds added 2.55% - with long-short funds ahead by 2.88%, market-neutral by 1.21%, and multi-strategy by 3.34%. This brings the indexed returns for the 3 strategies together to 105.63 for the year so far.

Monthly Market Recap
After a flat February, a range of positive economic data saw markets rallying strongly across all indices. Resources topped the list returning 10% for the month, but all major indices topped 5%. And on April 1, one day after the end of the month under review, the AllShare index went above 29 000 for the first time since mid-2008. More on current market levels below.

Of course the current bouyancy is based on a range of encouraging economic signs. Locally, the unexpected rate cut naturally helped things, as did continued interest in SA retail plays, but the biggest influence is undoubtedly the popularity of the mining sector on the back of very firm commodity prices across the board, in turn based on views that the global recovery is looking to be stronger than expected.

Amidst the optimism, it may well be worth remembering that in order to sustain prices this general economic environment (a) has to remain positive and, perhaps more importantly (b) has to translate into the sorts of earnings increases which can justify some of the prices seen at present. The latter point has been questioned.

Returns for March:

Index------ Return
All Share….. 7.9%
Top40….. 8.1%
Fini15….. 7.6%
Indi25….. 5.6%
Resi20….. 10.2%
Findi30….. 6.3%
Swix40….. 7.0%
MidCap…… 6.9%
SmallCap*……4.1%
Data from Bloomberg. SmallCap is capital return as total return is unavailable

The AllShare Total Return index ended March 2010 at 3 250. At that level:

• The index is just 8% below its record high (3 560) of 22 May 2008;

• And that high was something of a Resource-led blow-off: a more meaningful high was probably that of 11 October 2007 (3 330): the index ended March just 1% below that level (and even that high could be ascribed to a bull market which had already run more than its course);

• The index is now 69% up on the low of 20 November 2008 (and 65% up on the retested lows of March 2009);

• And also worth noting, the compound annualised return over the last 5 years has been 20.2% That’s not bad for a period covering the worst economic crisis since the 1930’s. Time to stop whining (not an easy thing, of course, for a Wall Street banker) and say thanks to Ben and Timmy (and Trevor too).

www.peregrine.co.za.


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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.