Fund of funds move higher in volatile May

South Africa-focused fund of funds in the HedgeNews Africa universe delivered a stable set of returns in May, with the HedgeNews Africa South African Fund of Funds Composite gaining a median 0.67% for the month to sit 2.89% higher on a year-to-date basis. Africa-focused fund of funds on the other hand found the month slightly more challenging, with most ending in the red. The HedgeNews Africa Fund of Funds Composite, which includes both Africa-focused funds and those investing solely in South African assets, added a median 0.65% for the month and is now 2.67% higher so far this year.

In comparison, the HedgeNews Africa Single-Manager Composite added 0.52% in May, whilst the FTSE JSE All Share Index and the MSCI World Index fell 0.82% and 2.45% respectively.

Leading the way in May was the Hedgehog Diversified Fund of Funds, which gained a strong 1.54%. The Blue Ink Fixed Income Arbitrage Fund was not far behind, rising 1.49% for the month, whilst the Edge Iconic Income Opportunity Fund gained 1.21%. The Blue Ink-ubator Diversified Fund and the Xhilarator Fund of Hedge Funds also performed well in May, gaining 1.15% and 1.14% respectively.

The Alpha Equity Hedge Fund is the strongest performing fund of funds on a three-month basis, returning a net 3.21%. The Caveo Performance Portfolio and the Novare Mayibentsha Opportunities Fund of Funds have also delivered strong returns over the period, rising 3.11% and 3% respectively. A further seven funds have gained more than 2.5% over the three-month period, which include, amongst others, the Hedgehog Diversified Fund of Funds (2.87%) and the Edge Iconic Matador I Fund (2.72%).

On a year-to-date basis the Blue Ink Equity Market Neutral Fund leads the way with a gain of 5.11%, whilst the Edge Iconic Matador I Fund and the 27four Alternative Long/Short Equity Fund have achieved returns of 4.91% and 4.73% respectively.

Pan Africa and MENA portfolios struggled with conditions during May, with most returns in the red for the month. The FMG Africa portfolios dipped 0.5% whilst the MENA portfolios lost 1.8%. Erste Bank’s Max Africa Alpha Fund however managed to produce a positive return, gaining a net 0.6%. Copyright – HedgeNews Africa. June 2011.