FMG Makes Africa Hedge Fund of Funds Offering

May 30 2007 | 2:02pm ET

FMG Fund Managers is making a break for what it dubs the “final frontier”—Africa—with its latest offering. The firm last month launched the FMG Africa Fund, a long-biased Bermuda-based fund of funds with $3 million in internal capital; FMG will begin marketing the fund to outside investors next month. 
 
The fund will invest in all of continental Africa, aiming to put roughly a third each in South Africa, sub-Saharan Africa and North Africa, according to fund documents. The firm cites the region’s potential for long-term sustainable due to an “abundance of resources” and “plenty of cheap labor,” as well as the lack of foreign securities ownership as drivers for the new offering.

FMG is also bullish on Africa’s GDP growth, which it says “is expected to sustain 5-7% p.a. for the foreseeable future,” as well as its nascent financial market, which “has just under 500 companies with a market cap greater than $100 million including foreign listed companies.”
 
The Africa Fund is currently invested in three managers: two long-only managers and one long/short trader, according to Arild Johansen, a principal in FMG’s Norway’s office. The unidentified long/short trader is an established manager based in South Africa managing some $100 million in assets and has a three-and-one-half year track record.

“The idea will be to find a mix where possible but it will be a long-biased fund so the number will be from five to eight managers,” said Johansen. “Only two markets offer hedging capabilities and we seek investments throughout the African continent. We are doing research on some very specific mandates as well so the portfolio will be as broad as we can make it.”

The Africa fund’s A shares charges 2% for management and 20% for performance, with a $10,000 minimum investment requirement while its B shares charge 1.5% and 10% with a higher minimum investment requirement of $100,000.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.