South African investors take a second look at hedge funds (2024)

FAQs

What is the minimum investment for a hedge fund in South Africa? ›

Note that in South Africa retail hedge funds are strictly regulated in terms of the investments and the risks that they are allowed to take and are open to all investors who can afford the average minimum lump sum investment amount of R50,000 (USD 2,600 approx).

The Matrix SCI Fixed Income Retail Hedge Fund was named Fund of the Year, delivering a net return of 20.86% in 2023 on a Sharpe ratio of 1.54%, outperforming its peers and the markets it trades. The Awards measure the best risk-adjusted returns of funds across 15 different categories.

How many Hedge Funds are there in South Africa? To date the Financial Sector Conduct Authority regulates 13 local hedge funds management companies, which combined manage more than 200 portfolios. Who invests in Hedge Funds? Members of the public are invited or permitted to invest money or other assets.

$33,500 is the 25th percentile. Salaries below this are outliers. $44,500 is the 75th percentile.

The money is a big draw as well: if you're at the right fund and you perform well, you can earn into the mid-six-figures, up to $1 million+, even as a junior-level employee. The top individual Portfolio Managers can earn hundreds of millions or billions each year.

South Africa's biggest institutional investor is the Government Employees Pension Fund (GEPF) which holds a whopping USD 7.4 billion invested in coal, oil and gas companies.

The number of hedge funds in South Africa has stabilised at 216, a number maintained for the past two years. In 2015, South Africa became the first country in the world to implement comprehensive regulation for hedge fund products.

The Determination, through existing tax legislation, will also accord duly registered and regulated hedge funds with the same “flow through” tax dispensation accorded to collective investment schemes; i.e. investors in RHF and QIHF will be taxed the same on amounts distributed to them upon 12 months of their accrual or ...

What is the minimum investment amount for a hedge fund? ›

prIvATe Funds oF Hedge Funds

are not registered and often impose minimum investment requirements of $250,000 or more.

1 2 Hedge fund general partners and managers often create high minimum investment requirements. It is not uncommon for a hedge fund to require at least $100,000 or even as much as $1 million to participate.

The overall cost of starting a hedge fund typically ranges from $40,000 to $140,000. Expenses include legal structure, compliance needs, technology requirements, and marketing strategies.

In addition, under the Financial Services and Markets Act 2000, hedge fund managers are legally required to gain approval from the FCA in order to establish a new fund. The approval process can take up to six months, and a new fund may be monitored for up to a year afterwards.