Sat, Jul 27, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

As one of South Africa's oldest hedge funds, Big Rock plays its cards right with low-risk relative value strategy

Wednesday, July 13, 2011

amb
Leila Kuhlenthal
Benedicte Gravrand, Opalesque Geneva:

Within the Peregrine Group, there is a South Africa-focused, market neutral hedge fund called Big Rock Capital Fund; it is now up 5.6% YTD net, after returning 1.9% in May 2011. That month, the fund remained market neutral (3% net long), it was leveraged 1.4 times and benefited from relative value trades in the financial and industrial sectors.

Comparatively, according to Singapore-based data provider Eurekahedge, emerging markets hedge funds lost 1.20% in May, 0.64% (est.) in June and are up 1.04% YTD; and relative value hedge funds lost 0.19% in May, gained 0.39% (est.) in June and are up 2.80% YTD (the only down year since 2000 being 2008).

The FTSE/JSE Africa All Share Index started 2011 at 32,427 and went down to 32,389 on May 30th. It suffered a dip at the end of 2008 and during 2009 (to around 18,000) but has recovered its May 2008 high of around 32,000 since.

Without a single down calendar year since its inception more than 12 years ago, the Big Rock Capital Fund has returned 626% in total and has annualised 17.3% with a standard deviation of 6.7%. Like quite a few of its peers in South Africa, it did well in 2008 with a return of almost 20%, and in 2009 with 17%.

Some of the fund's portfolio managers, along with Leila Kuhlenthal of the Peregrine Group, spoke to Opalesque's founder Matthias Knab during his recent visit to South Africa.

Big Rock was acquired by the Peregrine Group in January 200......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. The Big Picture: CTA focused on Chinese futures continues to shine[more]

    B. G., Opalesque Geneva: Many well-known CTA groups have been investing in the China onshore commodity futures market opportunity as soon as it was possible. And foreign fund participation in this market is growing anew. One among them is Eagle, which has been active in the field for over 30 yea

  2. Opalesque Roundup: Emerging market hedge fund gains accelerate as AUM reaches highest level since 2Q 2022: hedge fund news[more]

    In the week ending June 28th 2024, industry figures showed that emerging markets hedge funds gains accelerated through mid-2Q, leading industry-wide regional performance with c

  3. Gordian Capital platform expands into Hong Kong[more]

    Laxman Pai, Opalesque Asia: Gordian Capital Hong Kong Limited, a unit of the USD 14 billion alternative manager Gordian Capital group, has been granted a license by the Securities and Futures Commission of Hong Kong to carry on Type 9 (Asset Management) and Type 4 (Advising on Securities) regulat

  4. Opalesque Exclusive: New convertible arb fund aims to do without old-school investing[more]

    B. G., Opalesque Geneva for New Managers: A new fund is revamping convertible arbitrage, one of the oldest hedge fund strategies, by adding a systematic layer to the common discretionary approach - where investment

  5. Other Voices: Will the tech boom feed the commodity cycle?[more]

    Reprinted with the permission of the author, Tim Pickering, founder and CIO of Canada-based quantitative investment manager Auspice Capital Advisors Ltd. Like many things within financial markets, the link between commodities and the overall economy and global stock markets is a bit o