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.<\/p>\n
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.<\/p>\n
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.”<\/p>\n
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.<\/p>\n