NEW hedge funds continue to open their doors for business, despite the lack of regulation in the hedge fund industry.
According to the Nedgroup Hedge Fund Review, three new hedge funds entered the market in the last quarter of last year, joining the Nedgroup review for the first time last month.
Hedge funds are unregulated in SA, but at a hedge fund conference in November, Jurgen Boyd, regulator of collective investment schemes in SA, said they could be governed under the Collective Investment Schemes Control Act as early as the first quarter of this year.
However, Nedgroup said not all hedge funds would be able or willing to comply with regulation and were likely to continue to operate in the unregulated sphere.
“The past semester has witnessed several new entrants, alleviating the growing scarcity of investment capacity as older funds mature and close for new (and future) investors,” Lizelle Steyn, manager of alternative investments at Nedgroup Investments, said.
