{"id":3511,"date":"2005-10-25T00:00:00","date_gmt":"2005-10-25T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"south-african-hedge-funds-return-average-3-9","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2005\/south-african-hedge-funds-return-average-3-9.html","title":{"rendered":"South African Hedge Funds Return Average 3.9%"},"content":{"rendered":"
I-Net Bridge<\/a>: For September, the 26 funds participating in the Nedgroup Hedge Fund Review delivered an average return of 3.9% net of fees, beating the sluggish bond market, which rose 0.1%, but lagging strong gains of 10% in local equities.<\/p>\n

All four trading strategies used by hedge funds yielded returns ranging from satisfactory to strong, with two funds delivering double-digit returns for the first time since November 2004.<\/p>\n

According to Nedgroup Investments Alternative Investments Manager Lizelle Steyn, who produces the hedge fund review, for the third quarter of 2005 the Nedgroup Hedge Fund Index returned 8.3%, compared to the Besa All Bond index gain of 1% and the 20.3% rise in the FTSE-JSE All Share index.<\/p>\n

Meanwhile, for the year to 30 September, the Nedgroup SA Hedge Fund Index rose by 22.6%, with an annualised standard deviation (a measure of volatility or risk) of a comparatively low 4.3%. This performance compared to bond returns of 13.6%, with a standard deviation of 6.1% for the year to date, and strong equity gains of 47.8%, with a standard deviation of 15.4%.<\/p>\n

The STeFI Interbank Call Rate for the same period was 6.7%.<\/p>\n

Steyn pointed out that over the longer term (through a bear and a bull phase in the equity market), hedge funds emerged as the asset class with a superior risk-return profile. Since its inception on January 1, 2001, the Nedgroup SA Hedge Fund Index delivered an annualised return of 23.5% per annum at a volatility of 7.1%. Over the same period the FTSE\/JSE All Share Index generated returns of 20.5% p.a. at a volatility of 19.9%.<\/p>\n

The Besa All Bond Index return and the STeFI Interbank Call Rate for this period are 15.2% p.a. and 9.5% p.a. respectively, at annualised volatility levels of 6.9% and 0.7%.<\/p>\n

“The main aim of most hedge funds is to protect investors against the down side in the market,” she noted.<\/p>\n

The Nedgroup SA Hedge Fund Index displayed close to no correlation with the FTSE\/JSE All Share Index at -0.01. Monitoring month-to-month returns, the maximum draw-down of the hedge fund index was 9%, while the equity index lost more than 30% (from June 2002 to April 2003).<\/p>\n

In terms of individual hedge fund performance (unadjusted for risk), Armin Diem’s Absolute Alpha Fund (long-short equity) took the honours for best returns over the one-year period to end-September at 66.9%, out of all categories.<\/p>\n

In second place was the Oryx Segregated Fund (long-short equity) with a one-year return of 54.3%.<\/p>\n

Over the two-year period to end-September, Peregrine Capital’s High Growth Fund (long-short equity) ranked tops with a return of 45.7%, followed by the Oryx Segregated Fund at number two with 44.4%.<\/div>\n","protected":false},"excerpt":{"rendered":"

I-Net Bridge: For September, the 26 funds participating in the Nedgroup Hedge Fund Review delivered an average return of 3.9% net of fees, beating the sluggish bond market, which rose 0.1%, but lagging strong gains of 10% in local equities. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3511","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=3511"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3511\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=3511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=3511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=3511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}