Assets under management by South African hedge funds have decreased by 9.1% to R62.2-billion in 2017. Under new regulations and despite the JSE All Share index growing by 17% this year, the industry has struggled to adapt to the economic and political dynamic in which the country finds itself. The Novare Hedge Fund Survey 2017 also showed that investors withdrew capital mainly from bigger funds due to poor performance; this meant there was a decrease in assets in funds holding more than R2-billion in assets. But funds that ranged from R100-million to less than R2-billion all increased in size. This is the first time in five years that the industry has experienced a decline in assets under management. Simone Blanckenberg, chief operating officer of Tantalum Capital, said the 9.1% reduction in assets was due to this poor performance as well as factors such as smaller funds being forced to consolidate or close down due to the increased cost of regulation, and some of the funds not bein...
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