Business Day – ALTHOUGH the popularity of hedge funds increases in direct proportion to the volatility of world financial markets, most South African investors remain shut out of these opportunities while the authorities consider how best to regulate hedge funds, say legal experts.
Assets managed by the local industry have grown to about R12bn in recent years despite the prohibition on marketing to the public, said Diane Bouwmeester, a lawyer specialising in hedge funds at Werksmans Attorneys. “Despite the legal hurdles, the growth of the industry shows there is strong demand for this kind of product.â€Â
It was possible many people had exposure to hedge funds through life endowments but it was not easy to make an investment as things stood.
In 2004, the Financial Services Board (FSB) published a discussion paper on hedge funds to elicit comment from investors. Responses were being considered and may find their way into a law governing hedge funds.
