Tough December for equity funds

The HedgeNews Africa South African Single-Manager Composite added 5.89% in 2017, slightly ahead of its 2016 performance of 5.27%, despite a negative December during which funds returned a median -0.85%.

The broader HedgeNews Africa Single-Manager Composite, which includes Africa-focused portfolios, gained 8.94% for full-year 2017, compared to 3.25% in 2016, including a 0.54% median gain in December.

Amongst South African hedge fund strategies, fixed income turned in a positive December with a median gain of 0.93%, while long/short equity, market neutral and quantitative and multi-strategy funds were all in the red for the month.

For the year, fixed income funds advanced a median 10.39% in 2017, in line with a 10.61% return in 2016. Long/short turned in a positive median 5.85%, improving on a -1.19% decline in 2016. The market-neutral and quantitative category advanced 3.58%, to deliver a 12-month return ahead of its 2.49% gain in 2016. Multi-strategy funds found 2017 more challenging than 2016 – closing the year 4.6% higher after a 10.21% gain the year before.

Africa funds showed improved fortunes in 2017, with the HedgeNews Africa Pan-Africa/AME Index adding a median 2.94% in December to finish the year 25.99% higher, compared to a 6.54% decline in 2016. Copyright. HedgeNews Africa – January 2018.

  Median Mean
South African Medians Dec-17 YTD-2017 Dec-17 YTD-2017
Long/Short Equity -1.19% 5.85% -1.24% 2.26%
Market Neutral & Quantitative Strategies -2.11% 3.58% -1.89% 1.79%
Single Manager Multi-Strategy -1.05% 4.60% -3.16% 1.58%
Fixed Income 0.93% 10.39% 1.04% 10.79%
Event Driven 1.12% 13.75% 1.18% 13.23%
         
African Medians        
Pan-Africa / AME 2.94% 25.99% 3.36% 28.40%
         
SA Single-Manager Composite -0.85% 5.89% -1.52% 3.16%
HedgeNews Africa Single-Manager Composite 0.54% 8.94% -0.09% 9.28%