Wealth Watch
STEPHEN CRANSTON: Local hedge funds buck trend
As emerging markets become more attractive, SA offers committed investors good returns, writes Stephen Cranston
Not for the first time, the trend in South African investment markets is the opposite of the rest of the world. In the third quarter, $29.2bn was redeemed from hedge funds globally. In September alone, the outflows were $10.3bn, which is more than twice the size of the entire South African hedge fund industry. This was the largest outflow after the panic withdrawals in the first quarter of 2009, which was quite understandable a matter of weeks after the Lehman Brothers collapse. Last month, even commodity funds, which benefited from the revival in the sector, had a $620m outflow, though they were still $11.2bn positive for the year. Recently, the last managed futures fund in SA was closed. But it might now be time for someone to step into the breach. Peter Laurelli is a key point man for global hedge funds as he is vice-president of research at eVestment, the dominant hedge fund research business. He says managed futures are the only primary strategy where investors allocated with a...
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