Roundtable: Average South African hedge fund is up more than double the global average YTD
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A number of South Africa based hedge funds have received significant foreign interest and sizable inflows from European multi-family offices. There is also interest from US endowments and fund of funds. Similar to multinational corporations that are looking for business opportunities in Africa, astute investors are moving into Africa as well. South African managers have the skill and experience to deal with emerging markets and frontier investing, in particular Sub-Saharan Africa.
Initially South Africa was perceived as only a mining-rich resources economy and so the country got predominantly categorized within the resources cycle. Other investors believe there are good investment opportunities in South Africa itself outside of just resources and mining. These investors also recognize the country's highly regulated stock market and financial market system together with its mature fund management industry. South Africa is very well-regulated and advanced relative to a lot of other markets and certainly to the rest of the African markets
The vast majority of South African hedge fund assets is coming form domestic institutional pension fund investors, which led to a very early institutionalization of the industry. Nearly all local hedge funds (representing 99.9% of assets) already use an independent administrator for fund valuations. Client administration and reporting are also commonly outsourced: disclosure and transparency in particular is exceptional: funds representing 70% of industry assets report performances intra-month to investors and funds representing nearly 60% of industry assets actually report their portfolio holdings to investors on a daily basis.
The 2012 Opalesque South Africa Roundtable was sponsored by IDS and Eurex and took place on November 7th in Cape Town with:
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