Business Day South Africa- The formation of 33 new hedge funds in the year to end June helped boost total industry assets under management by almost 70% to R25,9bn, excluding money in unit truststhat use leverage.
According to the 2007 South African Hedge Fund Survey, released by Novare Investments in Cape Town today, there is considerable potential for hedge funds to continue their impressive run.
Says Carla de Waal, portfolio manager of Novare Investments: “Estimated capacity left in open funds has escalated to more than R30bn. As a result, managers believe there is scope to at least double the size of the industry.”
She noted that, whereas in previous years managers departing large investment houses set up most new funds, this time round start-ups tended to be launched within established companies – including large asset managers, boutique hedge fund houses and niche managers.
