Johannesburg - South African hedge-fund assets rose more than 27 percent in a year as equity-focused funds performed strongly, advisory group Novare Investments said.
Assets under management increased by 10 billion rand to 53.6 billion rand in the 12 months through June, Cape Town-based Novare Investments said in its 11th annual study of the local industry, published today.
“Where strategies are concerned, the equity long/short strategy continued to dominate, representing 59.9 percent of industry assets compared to 52.5 percent of assets 12 months earlier,” said Novare Investments portfolio manager Eugene Visagie.
Fixed-income funds were the worst performing segment, with net outflows exceeding 1.4 billion rand, the survey shows.
More than 63 percent of cash inflows were allocated to companies with hedge fund assets of more than 2 billion rand.
South Africa’s hedge fund industry is maturing, with a third of total assets overseen by managers with more than 10 years’ experience, Novare Investments said. - Bloomberg News