Moneyweb – South Africa’s hedge fund industry is mushrooming, with assets under management more than doubling in the last 18 months to about R16,8bn.
That number is expected to jump to R20bn by the end of the year and R30bn by December 2007, according to Kevin Shames, a director of Alpha Asset Management.
With recent stock market dips, you might expect hedge fund managers to be raking in the money even more.
The theory is that hedge funds, generally, should produce stable returns regardless of where markets are heading so presumably they would seem particularly attractive right now. But that hasn’t beenthe case.
Jarred Glansbeek, CEO of asset/liability consultants’ Riscura Solutions, said volatility in the last two months has left many investors feeling nervous.
