African Funds Of Funds Offer Less Volatility, Correlation

Aug 19 2011 | 4:44am ET

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.


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