Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Business Day South Africa – Examiners with the US Federal Reserve have questioned Wall Street counterparties about their exposure to debt and other holdings of Citadel Investment Group, The Wall Street Journal reported at the weekend.
Citadel denied the report.
Citing people familiar with the matter, the j ournal said the Fed questioned the counterparties in at least two instances in recent days.
But Katie Spring, a spokeswoman for Citadel, denied the rumours that the Fed had spoken to the hedge fund’s counterparties specifically about Citadel and possible problems with its debt.
Reuters – Nigeria’s buoyant real economy and strong domestic liquidity will limit the damage caused by hedge funds and portfolio investors pulling money out of the country as the global financial crisis bites, analysts say.
The sheer size of Nigeria’s economy means it has been the main beneficiary outside South Africa of a rush to invest in Africa in recent years. Hedge funds and private equity firms from Asia, the United States and Europe have all put money into its equities and bond markets.
That means that, on paper, sub-Saharan Africa’s second biggest economy is one of the most vulnerable on the continent as institutional investors around the world struggle with tightening credit lines and become more risk-averse.
"We have certainly moved away from the situation where everyone was scrambling to get something in Nigeria, where everyone needed exposure to Nigeria," said Razia Khan, head of Africa research at Standard Chartered in London.
Business Day – Private equity firm Actis says equity funds have embraced investing in Africa because many governments have instituted market reforms which are creating opportunities for brave investors willing to take a long-term view on Africa.
“There is increased private equity interest in the continent, illustrated by numerous new (private equity) funds being raised for Africa," Peter Schmid, head of Actis Africa, said yesterday.
His firm recently led a consortium to acquire Alstom South Africa, a big electrical engineering, manufacturing, distribution and contracting business, for R5,16 bn.
Analysts say the lure of emerging markets in countries such as Russia, China and India, and now Africa, has grown stronger after the bruising credit crunch in the US and Europe.
Reuters – Nigeria’s buoyant real economy and strong domestic liquidity will limit the damage caused by hedge funds and portfolio investors pulling money out of the country as the global financial crisis bites, analysts say.
The sheer size of Nigeria’s economy means it has been the main beneficiary outside South Africa of a rush to invest in Africa in recent years. Hedge funds and private equity firms from Asia, the United States and Europe have all put money into its equities and bond markets.
That means that, on paper, sub-Saharan Africa’s second biggest economy is one of the most vulnerable on the continent as institutional investors around the world struggle with tightening credit lines and become more risk-averse.
"We have certainly moved away from the situation where everyone was scrambling to get something in Nigeria, where everyone needed exposure to Nigeria," said Razia Khan, head of Africa research at Standard Chartered in London.
Business Day South Africa- There seems little doubt hedge funds have started to play an important role in any balanced investment strategy.
Novare Investments, which manages the Mayibentsha Fund of Funds, which was launched in April 2003 and has R1,7bn under management, says that hedge funds today represent about R35bn of investment in this country in about 140 hedge funds, predominantly within long-short and market neutral equity based strategies.
Reuters- Production problems at platinum mines in South Africa and growing demand from car makers mean prices of the precious metal have potential to hit new highs, a fund manager at BlackRock told Reuters.
A power crisis in South Africa, which produces 80 percent of the world’s platinum, and worries about shortages drove prices to a record high of $2,290 an ounce early in March. Prices are currently around $2,150 an ounce.
"The acceleration in the rate of increase in prices was probably accentuated by the power crisis in South Africa," said Evy Hambro, a UK-based fund manager at BlackRock.
