Personal financeSouth Africa Hedge Fund Managers Reveal How to Play the "africa Story", Global Financial Industry Found at Inflexion Point
The Opalesque South Africa Roundtable discusses the range and consequences of this inflexion point, from a fund manager as well from an investor point of view.
The Roundtable was sponsored by IDS Group and took place November 10th 2008 in their Cape Town Office. There, the participants also discussed the particularities of investing in Africa (ex-South Africa). This new, free Opalesque Roundtable script can be downloaded here:
http://www.opalesque.com/index.php?act=static&action=RoundtableSouthAfrica
South Africa's equity and fixed income markets displayed exemplary robustness during 2008
Many global allocators may not be aware that the South African financial market infrastructure matches or exceeds its "first world" counterparts in many respects. The equity and fixed income markets demonstrated exemplary robustness throughout the turbulences of 2008: no short-selling ban, no trading halt and no failed trades. Offshore investors can benefit from efficient and proven ways to get pure South African alpha without taking currency risk.
The "Africa Story" - the next big theme?
During the Roundtable, portfolio managers explain new ways to construct hedges, and inform on new and upcoming products. How can global investors benefit from the "Africa story", which is probably the largest opportunity set in the new investment paradigm called "frontier investing"? How do you deal with restricted liquidity, and is Africa really uncorrelated?
The following experts participated in the Opalesque South Africa Roundtable:
*James Gubb, Founding Partner of Clear Horizon Capital
*St. John Bungey, Partner, Praesidium Capital Management
*James Addo, Portfolio Manager, Finch Asset Management
*Simone Lowe, Portfolio Manager, Thames River Capital
*Andy Pfaff, Founding Partner of Trendline Funds
*Ian Hamilton, Founder, IDS Group
*Ryan Proudfoot, Co-Head RMB Prime Broking
*Warren Chapman, Head of Peregrine Prime Broking
*Kevin Ewer, Portfolio Manager, Blue Ink Investments
South African hedge fund managers and hedge fund investors share surprising insights. For example, did you know that:
l South African single strategy hedge funds offer transparency "far superior to anything anywhere else", according to investors?
l South African hedge funds suffered their first - and only until that point - net redemptions in October 2008, but only 2.5% of total assets?
l South Africa is the first country in the world that actually distinguishes between normal fund managers and hedge fund managers, with higher criteria required for hedge fund managers?
l Who is buying seats on African exchanges to get the benefit of local presence?
l Opportunities in currencies - did you know Nigeria has higher reserves than South Africa?
l Which new strategies are emerging in South Africa and pan-Africa?
l That the majority of the 53 African countries are driven by infrastructure spending and domestic demand, so not by commodities?
l Long-short managers, although constraint by offering monthly liquidity, still see "wonderful" opportunities in the liquid space
l Will there be an "united exchange of Africa"?
The Opalesque South Africa Roundtable can be downloaded here:
http://www.opalesque.com/index.php?act=static&action=RoundtableSouthAfrica
All other previously published Opalesque Roundtable Scripts can be accessed here:
http://www.opalesque.com/index.php?act=archiveRT
About Opalesque:
Matthias Knab, Director of Opalesque Ltd, moderates the Opalesque Roundtables. Matthias Knab is an internationally recognized expert on hedge funds and alternatives.
In 2003, with the publication of its daily Alternative Market Briefing, Opalesque successfully launched an information revolution in the hedge fund media space: "Opalesque changed the world by bringing transparency where there was opacity and by delivering an accurate professional reporting service." - Nigel Blanchard, Culross. This hybrid financial news service, which combines proprietary industry news stories and filtered third party reports, has been credited by many industry insiders with delivering precise, accurate, and vital information to a notoriously guarded audience.
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