African funds of hedge funds offer steady, superior and uncorrelated returns, according to a new study by PerTrac and HedgeNews Africa.
The latter's Fund of Funds Composite Index remained within a range between up 2% and down 2% on a month basis over the past two years, the study shows. By contrast, the Standard & Poor's 500 Index has been a roller-coaster ride, with monthly returns ranging from 10% up to 10% down.
What's more, African funds of funds on average enjoyed more up months than the S&P500. And during down periods, the HedgeNews Africa index outperformed the S&P500 by 42.93%.
The study is the first fruit of HedgeNews Africa's new partnership with PerTrac. The latter has added the former's database to its analytics platform.