What is Hedge Fund?
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives
Top Hedge Funds In South Africa
Global trends
Globally we’re seeing an uptake in the use of hedge funds, particularly in pension and sovereign wealth funds, as well as in endowments, foundations, and family offices – where preservation is key.
In the US, some of the top endowment funds have a 25% allocation to absolute return hedge funds, and we see a 46% allocation to alternative investments in the average family office portfolio.
Are there any hedge funds in South Africa?
Hedge funds in South Africa are classified according to their investment strategies. The most popular hedge fund strategy is Long Short Equity.
At the end of 2022, 59.2% of retail money was invested in Long Short Equity Hedge Funds and 45% of qualified investor money.
How many hedge funds are there in South Africa?
216
This resulted in comprehensive regulations and the consolidation and closure of funds. The number of hedge funds in South Africa has stabilized at 216, a number maintained for the past two years.
Are hedge funds regulated in South Africa?
Hedge funds are regulated by the Financial Sector Conduct Authority (FSCA). Exchanges and members of exchanges are regulated by the FSCA.
Who can invest in hedge funds in South Africa?
Members of the public are invited or permitted to invest money or other assets. There are two types of investors: retail and qualified investors. Any investor may invest as per the requirements set out by the FSCA.