Hedge Funds
| Fund name | Bao Fund | Libra Fund | Abax Hedge Fund | Constellation Fund |
|---|---|---|---|---|
| Strategy | Market Neutral Equity Fund | Market Neutral Equity Fund | Low volatility Long Short Equity Fund | Concentrated Long Short Equity Fund |
| Benchmark | Cash | Cash | Cash | Cash |
| Inception date | 1-Apr-11 | 1-Oct-09 | 1-Nov-01 | 1-Oct-07 |
| Fund Manager | Wallie van der Walt | Omri Thomas | Marius van Rooyen | Omri Thomas |
| Fund size (Dec 2011) | R86m |
R417m | R773m | R1,434m |
| Fees | 1/20; With highwater, No entrance or exit fees | 1/20; With highwater, No entrance or exit fees | 1/20; With highwater, No entrance or exit fees | 1/20; With highwater, No entrance or exit fees |
| Legal Structure | Variable Rate Debenture | Variable Rate Debenture | Vesting Trust | Variable Rate Debenture |
| Pricing/Liquidity | Monthly | Monthly | Monthly | Monthly |
| Prime Broker | RMB Prime | Deutsche Bank | Deutsche Bank | Deutsche Bank |
| Risk reports | Riscura | Riscura | Riscura | Riscura |
| Investment Administrator | Maitland Fund Services | Maitland Fund Services | Maitland Fund Services | Maitland Fund Services |
| Net exposure limits | -20% to +20% | -20% to +40% | -50% to +100% | -100% to +200% |
| Max Gross Exposure | 250% | 300% | 300% | 400% |
| Biggest long position limit | +10% | +15% (average < 5%) | +15% (average < 5%) | +20% (average < 8%) |
| Biggest short position limit | -10% | -10% (average < 4% ) | -10% (average < 4%) | -15% (average < 6%) |
| Stop loss | -10% review, -15% cut | -10% review, -15% cut | -10% review, -15% cut | -10% review, -15% cut |
As a result of the currently unregulated nature of Hedge Funds in South Africa, we believe it is inappropriate for us to advertise the performance and structure of the portfolio, as we do not want this to be construed as an offer to the public to invest in the fund.
We do however believe that the appropriate use of Hedge Funds in most investor's portfolios of savings vehicles offers a high degree of appeal, and that in time these instruments will become commonplace in the South African investment arena.
Should you require any further information explaining the mechanics of the management of Hedge Funds, please contact us.