Investing in hedge funds – An untapped opportunity for South Africans
Hedge funds have an excellent track record of delivering secure and lucrative returns, yet are considerably underutilised by South Africans investors.
This is according to Laurium Capital Head of SA Business Development and Marketing, Kim Zietsman.
Zietsman explained that hedge funds have proven their worth by showing unrivalled resilience against socioeconomic crises, as well as a low correlation to traditional equity portfolios – making them an excellent option for diversifying an investment portfolio.
“With long track records, established processes, and philosophies, the experienced portfolio managers usually have their own wealth invested in the funds alongside their investors,” said Zietsman.
Zietsman said that despite the fantastic potential hedge funds offer, they continue to be underutilised in South Africa due to one simple reason: They are seen to be exclusively for high-net-worth individuals and large organisations.
Hedge funds are perceived to be confusing, risky, and complex, too – factors that have led most retail investors to forgo them in favour of more ‘traditional’ and ‘safe’ alternatives.
The hedge fund revolution
Laurium Capital is changing this narrative, however, and has made investing in hedge funds much simpler and more accessible for South Africans in recent years.
Three of Laurium Capital’s top rand-based hedge funds are available to retail investors in the country, and have been designed specifically to make it easier for individuals to invest.
Two of these funds have been running for over 15 years, and have shown impressive performance and resilience through several socio-economic challenges.
The third retail investor hedge fund was launched earlier in 2024, and offers investors the opportunity to access a select range of international equities alongside a large base of South African equities.
The three Laurium Capital hedge funds available to retail investors are detailed below:
- Laurium Market Neutral Prescient RI Hedge Fund – A conservative-risk fund that has provided an annualised 10.3% net return from its inception in 2009 to 31 October 2024.
- Laurium Long Short Prescient RI Hedge Fund – A moderate-risk fund which has returned 10.0% (net of fees) annually from its inception in 2008 to 31 October 2024.
- Laurium Enhanced Growth Prescient RI Hedge Feeder Fund – The latest addition to the Laurium suite of funds, launched 1 March 2024, has had a great start, generating 23.8% to 31 October 2024. It invests primarily in South Africa equities, but also includes an allocation of select international equities.
For qualified investors, Laurium Capital also offers the Aggressive Long Short Prescient QI Hedge Fund.
The Aggressive Long Short Prescient QI Hedge Fund has delivered an impressive 14.8% annualised net return between its launch date of 1 January 2013 and 31 October 2024.
Invest with Laurium Capital
Laurium Capital offers South African investors an excellent opportunity to invest in a range of established hedge funds.
It has over R58 billion in assets under management and a 16-year track record of success across its business.
This is thanks to Laurium Capital’s combination of on-the-ground research and extensive local market knowledge, which help it to identify the best investment opportunities.
Laurium Capital’s fund managers also invest their own money in their funds, ensuring they have a vested interest in achieving excellent results.
Click here to learn more about Laurium Capital’s hedge funds.
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