The launch of the two products follows changes to legislation that classified hedge funds as collective investment schemes from April last year. A process has since been under way to register and approve offerings for retail investors, and these are the first to become available.
It is anticipated that the fund of hedge funds structure will be the most popular, and probably most appropriate, way for retail investors to invest in these products. This is because it leaves the selection and blending of managers to experts in the hedge fund space who have the necessary insight and know-how. Its underlying funds are predominantly equity long-short mandates, with a smaller allocation to multi-strategy funds.
Its underlying funds predominantly employ equity market neutral and fixed interest arbitrage strategies. The firms that are managing the underlying funds and segregated portfolios within these funds include the likes of Matrix Fund Managers, Tower Capital and Mazi Capital.
For investors, the important thing about these funds is the aim to provide fairly consistent performance. This is the primary objective of hedge funds — to reduce the risk in a portfolio and produce returns that are uncorrelated to other asset classes.
These managers aim to protect capital, especially against big draw downs. And particularly in the current environment where volatility is high, they offer an attractive proposition.
Don't have an account? Sign up for FREE. Investors take note of what Warren Buffett says about hedge funds. Also try and establish what fees you will be paying if you can. They are normally kept secret because they are massive. Anyway why would anyone invest any money in SA? Keep this field blank. Registered users can save articles to their personal articles list. Login here or sign up here. Two fund of hedge fund offerings launched by Novare.
What should investors expect from these offerings? Join our mailing list to receive top business news every morning. To comment, you must be registered and logged in. Username Password Remember Me Forgot password. Sponsored by Wealth Migrate. How have balanced passive funds been performing? Editor's Picks Commented Top Read 1.
Another rude awakening for homeowners. Bitcoin loses over a fifth of its value in less than 24 hours. Rand rises on signs Ramaphosa doing well in ANC race. All I want for Christmas is bitcoin. Koos Bekker vs Yunus Carrim.
This channel is hosted by iono. Private equity in action View article. Dirk Groeneveld Client Care. How do I find a missing policy in my name? Name or share code. Give your children something to think about. Sponsored by Liberty There are many moving parts to retirement. Sponsored by FNB 'Clearly communicate your expectations'.More...