Ongoing uncertainties around COVID-19 and the impact on global growth drove investor sentiment through March. Hedge funds were not spared, although they did perform significantly better as a group than various market indices.
The HedgeNews Africa South African Single-Manager Composite declined a median 4.61% in March to sit 6.4% lower for the first quarter, while the broader HedgeNews Africa Single-Manager Composite, which includes Africa-focused and global mandates, fell a median 8.51%, leaving it 10.63% lower year to date.
By comparison, the FTSE/JSE All Share Index fell 12.13% in March (down 21.38% for the quarter) while the South African All Bond Index gave up 9.75% for the month to sit 8.74% lower for the quarter. The MSCI World Index dropped 13.47% (-21.44% for Q1) and the MSCI Emerging Markets Index declined 15.61% (-23.87% for Q1).
Market-neutral was the best-performing strategy for the month, dipping a median 0.19% to sit 0.95% lower for the quarter.
Fixed income funds had a challenging month, coming in with a wide range of returns to record a median decline of 2.07% in March (-0.28% return for Q1).
Long/short equity funds had the toughest time – generating a median -9.08% for the month to sit 13.25% lower for the quarter, while multi-strategy funds fell a median 8.51% to sit 11.65% in the red for the first three months. Copyright. HedgeNews Africa – April 2020
|South African Medians||Mar-20||YTD||Mar-20||YTD|
|Market Neutral & Quantitative Strategies||-0.19%||-0.95%||-2.56%||-3.30%|
|Single Manager Multi-Strategy||-8.51%||-11.65%||-9.43%||-13.21%|
|Event Driven (credit)||0.63%||2.22%||0.63%||2.22%|
|Pan-Africa / AME||-21.67%||-25.78%||-18.54%||-21.81%|
|SA Single-Manager Composite||-4.61%||-6.40%||-7.13%||-9.55%|
|HedgeNews Africa Single-Manager Composite||-8.51%||-10.63%||–9.02%||-11.46%|