Alternatives (Hedge Funds)

We offer a range of South African hedge fund capabilities for qualified investors*. These capabilities employ the following range of hedging strategies:

  • Volatility arbitrage;
  • Market neutral (Equity); and
  • Long/short (Equity)

We offer the following hedge fund capabilities:

  • Volatility Arbitrage Hedge Fund and Aristeia Opportunities Hedge Fund. These are both actively managed derivative-based funds that aim to extract uncorrelated, underexploited and sustainable alpha within the South African equity derivatives market.
  • The Managed Alpha Hedge Fund. This is an equity market neutral fund that identifies the themes driving the market and then builds an appropriately positioned portfolio to benefit from exposure to these themes. The fund has an adaptive weighting to these themes through time.
  • The Chronos Hedge Fund. This is a long/short equity fund that targets superior risk-adjusted returns by employing diversified trading strategies that seek to exploit opportunities within the South African equity derivatives market.  
 Capabilities  Performance Target
 Volatility Arbitrage Hedge Fund  STeFI Call Deposit + 3-5% (net)
 Managed Alpha Hedge Fund  STeFI Call Deposit + 4% (net)
 Aristeia Opportunities Hedge Fund  STeFI Call Deposit + 5-7% (net)
 Chronos Hedge Fund  STeFI Call Deposit + 6% (net)

 
* "Qualified investor" means any person, who invests a minimum investment amount of R1 million per hedge fund, and who: (a) has demonstrable knowledge and experience in financial and business matters which would enable the investor to assess the merits and risks of a hedge fund investment; or (b) has appointed a FSP who has demonstrable knowledge and experience to advise the investor regarding the merits and risks of a hedge fund investment