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
| Median | Mean | |||
| South African Medians | Mar-20 | YTD | Mar-20 | YTD |
| Long/Short Equity | -9.08% | -13.25% | -9.06% | -13.15% |
| Market Neutral & Quantitative Strategies | -0.19% | -0.95% | -2.56% | -3.30% |
| Single Manager Multi-Strategy | -8.51% | -11.65% | -9.43% | -13.21% |
| Fixed Income | -2.07% | -0.28% | -4.12% | -2.08% |
| Event Driven (credit) | 0.63% | 2.22% | 0.63% | 2.22% |
| African Medians | ||||
| 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% |