Two Fairtree hedge funds won in their nominated categories in the 10th HedgeNews Africa Awards held in Cape Town. The multi-strategy alternative and long-only investment manager scooped silverware for the Fairtree Protea Equity Long Short SNN Retail Hedge Fund (named best Long/Short Equity Fund and overall Fund of the Year, returning 24.35% for the 2018 calendar year) and the Fairtree Assegai Equity Long Short Hedge Fund (named Best Single Manager Hedge Fund for five-year performance).
By category, fixed income hedge funds were the strongest, adding more than a median 10% for the second consecutive year, followed by market-neutral and quantitative funds, which gained a median 6.18%. Multi-strategy funds ended the year 4.14% higher while equity long/short protected against the downside with a median decline of 1.79%.
Against the back drop of complicated markets with an emerging-market exodus causing volatility, and a string of corporate landmines challenging managers, the funds (managed by Jean Pierre Verster and Stephen Brown respectively) delivered strong risk-adjusted returns over the measured periods.
The awards are based on risk-adjusted returns for the 2018 calendar year, using an established methodology that comprises net returns as well as Sharpe ratio as a measure of volatility.
To qualify for a nomination, funds had to average a minimum of R80 million in assets under management in that strategy throughout the calendar year.