Investor's Notebook: Have hedge fund managers lost their lustre?
By the end of the year all SA hedge funds will be registered as collective investment schemes. Some, known as qualified investor schemes, will continue to focus on the institutional market and the very rich, and the retail funds certainly won’t be taking R200/month debit orders as their minimums will be for R50,000 lump sums.But some mass-affluent investors will be able to add hedge funds to their asset mix in a much more straightforward way than before. The funds promise a high probability of positive returns, which will be more difficult to achieve than they were during the bull market of the past 20 years. But it is coming at a time when hedge fund managers globally have lost their lustre. A recent Reuters article said that hedge funds are facing a storm of unsatisfied clients either demanding steep discounts on fees (hedge funds typically charge 2% fixed plus 20% of the upside) or withdrawing their funds. And they include giant institutions such as the New York City Employees Re...
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