Hedge fund medians flat as fixed income still shines

South African hedge funds were flat in September, dipping a median -0.28% in a tough month for the markets, to sit 2.01% higher on the year, according to the HedgeNews Africa South Africa Single-Manager Composite.

The broader HedgeNews Africa Single Manager Composite, which includes Africa long-only funds, broader alternatives and global mandates, dipped -0.33% to sit -1.89% lower on the year.

By comparison, the JSE All Share Index fell 1.58% (-2.51% year to date) on a total return basis, and the All Bond Index lost 0.05% (to sit 1.79% higher for the year so far).

Event-driven mandates were the strongest performing category, adding a steady 0.54% to sit 5.58% higher on the year.

Fixed income funds were also positive, gaining 0.03% to sit 8.3% higher for the year, making them the best performing category so far in 2020.

Market neutral and quantitative mandates dipped 0.03% in September but remain resilient on the year, with a 6.69% median gain.

Long/short equity funds had a tough month, dipping a median -0.98% to sit  -2.82% lower on the year, while multi-strategy funds fell -0.39% to remain -3.66% lower on the year as a group. Copyright. HedgeNews Africa – October 2020.

Median Mean 
South African MediansSept-20YTDSept-20YTD
Long/Short Equity-0.98%-2.82%-1.02%-0.49%
Market Neutral & Quantitative Strategies-0.03%6.69%-0.12%5.39%
Single Manager Multi-Strategy-0.39%-3.66%-0.71%-2.48%
Fixed Income0.03%8.30%0.31%8.05%
Event Driven (credit)0.54%5.58%0.54%5.58%
African Medians
Pan-Africa / AME-0.40%-17.57%-1.15%-13.53%
SA Single-Manager Composite-0.28%2.01%-0.51%1.19%
HedgeNews Africa Single-Manager Composite-0.33%-1.89%-0.85%0.30%