Multi-strategy funds stand out in December

South African hedge funds ended the year on a positive note with all strategies delivering positive median returns in December, while the HedgeNews Africa South African Single-Manager Composite added a median 0.8% for the month to end the year 5.18% higher. This compares to the FTSE/JSE All Share Index’s December gain of 4.25% and 2018 performance of -8.53%, while the All Bond Index added 0.64% in December to leave it 7.69% higher on the year.

The HedgeNews Africa Single-Manager Composite, which includes Africa- and global-focused portfolios, gained a median 0.55% for the month to record a 2018 gain of 2.1% with many African markets in the red for the year.

Multi-strategy funds led the way in December, gaining a median 1.4% to record a return of 4.14% for the year.

After three consecutive negative months, long/short funds delivered a median 0.76% in December to sit 1.79% lower for the year.

Market-neutral funds were steady in December, returning a median 0.68% and a 2018 gain of 6.18%.

Fixed income hedge funds had another good year, gaining 10.73% after adding a median 0.64% in December. Copyright. HedgeNews Africa – January 2019.

  Median Mean
South African Medians Dec-18 YTD-2018 Dec-18 YTD-2018
Long/Short Equity 0.76% -1.79% 0.84% -1.70%
Market Neutral & Quantitative Strategies 0.68% 6.18% 0.70% 6.50%
Single Manager Multi-Strategy 1.40% 4.14% 0.86% 0.34%
Fixed Income 0.64% 10.73% 0.99% 10.60%
Event Driven (credit) 1.36% 13.51% 1.36% 12.26%
         
African Medians        
Pan-Africa / AME -0.61% -8.85% -0.84% -9.70%
         
SA Single-Manager Composite 0.80% 5.18% 0.89% 2.43%
HedgeNews Africa Single-Manager Composite 0.55% 2.10% 0.65% -0.49%