The hedge fund issue isn’t just about returns

Sygnia’s decision last week to close all of its hedge funds has raised important questions about this industry. What are hedge funds supposed to do, and how should investors judge whether they are delivering?

In particular, many investors have been asking how you should measure their performance against traditional unit trusts. Since balanced funds are also designed to manage risk while delivering returns close to the stock market, are they directly comparable?

While this may seem logical, Werner Opperman from 27four Investment Managers says that contrasting these strategies against each other may not be entirely the right approach.

Proceed to Source : MoneyWeb

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Magda Wierzycka shuts Sygnia hedge funds, slams managers for investment ‘ruse’

South African money manager Sygnia Ltd. closed all its hedge-fund products, ending a 13-year history with an investment strategy its chief executive officer now calls a ruse to pocket fees.

“Once you know that the emperor has no clothes you cannot in good conscience support what has become a management-fee racket,” Chief Executive Officer Magda Wierzycka wrote in an opinion piece in Johannesburg-based daily newspaper, Business Day.

Proceed to Source : Biznews

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Your guide to alternative investments

The poor performance of the JSE this year has made the prospect of spreading investments over non-equity asset classes increasingly appealing.

Alternative investments in hedge funds, private equity, venture capital, infrastructure and non-listed property, among others, spread the risk and in some cases these asset classes have been outperforming equities.

Proceed to Source : Fin24

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