{"id":797891,"date":"2024-10-30T14:59:09","date_gmt":"2024-10-30T12:59:09","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=797891"},"modified":"2024-10-30T15:19:33","modified_gmt":"2024-10-30T13:19:33","slug":"the-untapped-power-of-hedge-funds-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/797891\/the-untapped-power-of-hedge-funds-in-south-africa\/","title":{"rendered":"The untapped power of hedge funds in South Africa"},"content":{"rendered":"\n<p>Hedge funds remain heavily underutilised in South Africa, despite their exceptional ability to safely diversify your investment portfolio.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.lauriumcapital.com\/funds\/hedge-funds-zar?utm_source=+BusinessTech&amp;utm_medium=Article&amp;utm_term=October+2024\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Click here to learn more about Laurium Capital\u2019s hedge funds.<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p>The key to successful diversification is combining asset classes that have a low, or even negative, correlation with each other \u2013 which hedge funds enable seamlessly.<\/p>\n\n\n\n<p>\u201cThe concept of diversification is vital for investors to grasp,\u201d said Laurium Capital Head of SA Business Development and Marketing Kim Zietsman.<\/p>\n\n\n\n<p>\u201cThe best diversifiers in a portfolio are those securities or investments that are less or even negatively correlated.\u201d<\/p>\n\n\n\n<p>Hedge funds are known for their low and negative correlations to traditional asset classes: cash, bonds, and equities \u2013 making them an excellent way to safely diversify your portfolio.<\/p>\n\n\n\n<p>Hedge funds also often have low correlations to each other, as each hedge fund manager uses leverage, net exposure, and their long and short books differently.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Underutilised opportunity<\/strong><\/h3>\n\n\n\n<p>According to ASISA, South Africa\u2019s unit trust industry stands at R3.6 trillion. Hedge funds, however, only make up about R151 billion of this value \u2013 which equals less than 4%.<\/p>\n\n\n\n<p>One reason for the low uptake of hedge funds is the perception that they are confusing and risky.<\/p>\n\n\n\n<p>While hedge funds do require more investment know-how to understand, they have repeatedly and continuously proven their worth in the country.<\/p>\n\n\n\n<p>\u201cWithin South Africa, our hedge fund industry has proven itself relatively resilient through each of the last few crises,\u201d said &nbsp;Kim Zietsman.<\/p>\n\n\n\n<p>Another reason for the low uptake in hedge funds is that they have been seen as only for the uber-wealthy investor.<\/p>\n\n\n\n<p>This is also no longer the case in the local market, as many tried-and-tested Retail Investor Hedge Funds (RIFs) are now available for direct investment and listed on major platforms.<\/p>\n\n\n\n<p>\u201cThis offers the person on the street access to some of the best investment minds in the country,\u201d said Zietsman.<\/p>\n\n\n\n<p>\u201cWith long track records, established processes, and philosophies, the experienced portfolio managers usually have their own wealth invested in the funds alongside their investors.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Laurium Capital<\/strong><\/h3>\n\n\n\n<p>Laurium Capital is one of South Africa\u2019s leading boutique asset managers, with over R58 billion in assets under management.<\/p>\n\n\n\n<p>It has a track record of continued success across its numerous hedge funds \u2013 which include both South African-based and US-dollar hedge funds &#8211; making Laurium Capital\u2019s funds an excellent way to safely diversify your investment portfolio. <\/p>\n\n\n\n<p>You can read about the <a href=\"https:\/\/businesstech.co.za\/news\/industry-news\/773250\/south-african-investors-are-putting-their-money-into-hedge-funds-this-is-why\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>strong performance of Laurium Capital\u2019s hedge funds here.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hedge funds are a great way to diversify your investment portfolio \u2013 but they remain heavily underutilised in South Africa.<\/p>\n","protected":false},"author":57,"featured_media":797919,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[19603],"class_list":["post-797891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-laurium-capital"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/797891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=797891"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/797891\/revisions"}],"predecessor-version":[{"id":797895,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/797891\/revisions\/797895"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/797919"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=797891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=797891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=797891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}