West Palm Beach (HedgeCo.net)- A Hedgeweek Special Report for March 2008 shows a strengthening of the South African hedge fund industry from just a few funds with aproximately ZAR1.4 billion ($0.18 billion) in as recently as mid-2002, to more than 130 funds with at least ZAR26 billion ($3.35 billion) in assets under management.
In the report by Simon Gray, he says, "Industry members predict that the current soaring growth rate will be maintained for some time, pointing to plentiful capacity available in existing funds and a level of allocation to alternative assets which remains well below those in other markets."
The constrictive rules governing the South African hedge fund industry has constrained investors from investing in alternatives in Africa, Gray reports, instead, investors have focused more on Asia and Latin America.
Gray predicts that factors are set to change to the benefit of South African managers, many of which are now developing the extended track records of success that conservative institutions are looking for.
"The industry is becoming broader and more sophisticated as established asset managers launch alternative products, and the dominance of equity long/short and market neutral strategies gradually diminishes while the asset share of multistrategy funds soars." Gray concluded.
Hedgeweek was launched in October 2002 and is part of the London-based Hedgemedia group, founded by financial publisher Sunil Gopalan and internet entrepreneur Oliver Bradley. Hedgeweek now reaches over 3,000 senior executives at hedge fund companies and investor groups worldwide.
Alex Akesson
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