Hedge Fund Reader : Hedge Funds expected to grow

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July 14, 2005

Hedge Funds expected to grow

Alpha Asset Management expects its R200 million fund to grow by two or three times in the next one year. Till now the firm has been investing only for wealthy individuals directly but due to increased demand of the fund in the market, it is planning to offer its services to third parties as well. James Clinch who is Alpha's business development director made this statement. Hedge fund has been known to be able to deliver absolute returns in all types of market scenarios. As such it is a good tool for investment. James Gilfillan, Alpha's research and analysis director, cited that the reasons for the negative word about the hedge fund industry seems to be stemming from over publicity of some hedge funds in the recent times. This along with the fact that there is paucity of clear understanding about the various strategies employed, resulting in negative word-of-mouth. Commenting on the ongoing debate on regulating the industry, Gilfillan said that regulations will definitely help the industry to get more acceptance from investors. Businessreport.co reports:

"Alpha Asset Management director Kevin Shames estimated that wealthy investors made up about R5.5 billion of the R8.5 billion, while pension funds and proprietary investments made up about R1.5 billion each."

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July 14, 2005 in Research | Permalink