Cape Town, South Africa-based Cadiz African Harvest Asset Management has launched a multi-strategy pan-Africa hedge fund to invest in equities, currencies, credit, and commodities.
On the equities front, the Cadiz Pan Africa Diversified Opportunities Fund will primarily invest in companies that derive at least two-thirds of their revenue from Africa, regardless of where they are based. It will invest in companies whose shares are listed in London, Toronto, Sydney, Australia, and Johannesburg, South Africa, and will also include American depositary receipts and dual-listed companies.
The fund launched in October with US$11 million in seed capital from Cadiz and European investors, according to the firm. It managed to gain a respectable 1.9% in its first three months of trading at a time when many of its emerging-markets peers suffered losses.
The firm said the fund’s investment team analyzed the pros and cons of extracting yield from the various asset classes and took an active decision to select “highly liquid underlyers.”
“Many Funds have been caught out by not fully appreciating the solvency and credit crises. As we review potential opportunities, we remain of the opinion that the bid is king and the name of the game is to be highly liquid,” it said.
The Fund is managed by Andrew Wolfson, Richard Cudmore and Kyle Hulett.