SA hedge funds hold their ground as equity market retracts

South African hedge funds had a tough October, with the HedgeNews Africa Single Manager Composite dipping -0.23% for the month as the JSE All Share Index (total return) dropped 4.73% and the All Bond Index added 0.89%.

The HNA Single-Manager Composite, which includes global and pan-African mandates, was flat with a 0.08% return, while the MSCI World Index fell 3.14% and the MSCI Frontiers Markets Africa Index added 5.31%.

Year to date, long/short equity funds are a median -3.49% lower, with a wide-ranging set of returns from individual funds, yet the category has limited losses compared with the equity market.

South African market neutral & quantitative strategies added a median 0.28% for October, while South African single-manager multi-strategy funds fell by a median -1.6%.

In South African fixed income, funds rose a median 0.37% for October, maintaining their year-to-date lead with a category gain of 8.7% for the first 10 months. Copyright. HedgeNews Africa – November 2020. 

Median Mean 
South African MediansOct-20YTDOct-20YTD
Long/Short Equity-0.69%-3.49%-0.13%-0.62%
Market Neutral & Quantitative Strategies0.28%6.99%0.67%6.09%
Single Manager Multi-Strategy-1.60%-5.20%-1.53%-3.97%
Fixed Income0.37%8.70%0.54%8.63%
Event Driven (credit)0.63%6.25%0.63%6.25%
African Medians
Pan-Africa / AME0.64%-17.04%1.11%-12.57%
SA Single-Manager Composite-0.23%1.77%-0.24%0.94%
HedgeNews Africa Single-Manager Composite0.08%-1.81%-0.03%0.27%