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.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of