From a fledgling business, largely unnoticed by the outside
world only a few years ago, South Africa's hedge funds are
rapidly evolving into an impressive industry. Despite having to
deal with regulatory handicaps, such as currency exchange
controls and a 'grey' regulatory environment, South Africa's
hedge fund managers are creating a sophisticated industry,
which stands out among global emerging markets.
After a long period of international isolation resulting
from decades of apartheid government, South Africa has regained
its place within the global economic system. A booming economy
and relative political stability are playing a major role in
allowing hedge funds to flourish. "New funds are being started
at a phenomenal rate," says Lizelle Steyn, manager of
alternative investments at Nedgroup Investments. "According to
our database, there were about 65 hedge funds one year ago, and
now it's up to 84 hedge funds."
Steyn, Nedgroup Investments
From a negligible asset...