South African hedge funds turned in a median gain of 6.19% in 2020, after adding 1.3% in December, according to the HedgeNews Africa South Africa Single Manager Composite.
The broader HedgeNews Africa Single Manager Composite, which includes pan Africa and global strategies, closed the year with a median 3.94% gain, after adding 1.84% in December.
This compares with a return of 7% from the FTSE/JSE All Share Index (TRI) in a volatile year, while South Africa’s All Bond Index rose 8.63% over 12 months. The MSCI World Index closed the year 14.06% higher and the MSCI Emerging Markets Index added 15.84%.
Single-manager multi-strategy funds were the strongest category for the month, adding 2.5% (+2.96% year to date), followed by long/short equity funds, which moved into the black for the year with a median 2.24% gain, while the JSE All Share rose 4.24% in December.
For the year South African fixed income was the strongest category, gaining 10.07% after adding 0.49% in December.
Market neutral & quantitative funds also had a good year, gaining a median 9.19% (+0.81% in December).
Pan African mandates moved 3.59% higher in December but remained 9.98% lower on the year. Copyright. HedgeNews Africa – January 2021.
| | Median | Mean | ||
| South African Medians | Dec-20 | YTD | Dec-20 | YTD |
| Long/Short Equity | 2.24% | 1.68% | 2.64% | 7.31% |
| Market Neutral & Quantitative Strategies | 0.81% | 9.19% | 1.02% | 9.56% |
| Single Manager Multi-Strategy | 2.50% | 2.96% | 2.62% | 4.75% |
| Fixed Income | 0.49% | 10.07% | 0.63% | 11.04% |
| Event Driven (credit) | 0.73% | 7.65% | 0.73% | 7.66% |
| | | | | |
| African Medians | | | | |
| Pan-Africa / AME | 3.59% | -9.98% | 4.63% | -4.12% |
| | | | | |
| SA Single-Manager Composite | 1.30% | 6.19% | 2.09% | 7.38% |
| HedgeNews Africa Single-Manager Composite | 1.84% | 3.94% | 2.87% | 7.87% |