Yesterday, the Novare Investments South African Hedge Fund Survey for 2012 was released in South Africa which found that industry assets in South African have reached an all-time high of R33.6 billion. 14 new hedge funds were launched in South Africa this year; in addition, the increase came primarily from the performance of established funds and not from the addition of these many new funds.
As Carla de Waal, the Head of Funds of Hedge Funds at Novare Investments said, “There has been a clear shift towards larger managers. Those housing assets of between R1 billion and R2 billion received the lion’s share of new inflows‚ with net asset inflows to these managers exceeding R1.5 billion. “
As de Waal cotinued, “Hedge funds achieved strong returns with considerably less volatility than the long only market‚ supporting the view that hedge funds offer an attractive risk-return profile.”