Nassau-based Magnum Global Investments is launching a new fund that will add to Magnum's existing ran...
The Magnum South Africa Equity fund is a fund of funds investing in a range of external managers in South Africa.
It seeks to benefit from the new economic environment and consequent investment potential that is fast developing in the country.
Dion Friedland, chairman at Magnum, said: "South Africa is an economy that is ripe with undiscovered growth companies and investment opportunities created by corporate restructuring, privatisation and mispriced equities."
The company has identified a number of hedge fund managers, including the South Africa Opportunities fund, the South Africa Omni fund, the Scott Performance fund, the Equinox Flexible fund, the Goodwin Gold fund, the Greenwich Securities fund and the Excalibur fund.
One of the managers selected is Chris Logan, who runs the South Africa Opportunities fund. He sees enormous potential in the country.
He explained: "South Africa is a rapidly changing environment, with numerous opportunities for entrepreneurs to provide services and solutions to the society's growth aspirations. Companies that are brought to market to capitalise on these opportunities have often delivered handsome returns to investors that successfully identified these companies early on."
In addition to investing in new businesses, the funds will be trying to profit from the growing wave of corporate restructuring of older, more established corporations in the country.
These older companies have often fallen out of investor favour, with their share prices having been severely de-rated as a result, often trading at deep discounts to inherent worth. It is hoped that there will be a renaissance in the performance of some of these shares as managements restructure to unlock shareholder value.
By choosing to invest in hedge funds, the Magnum South Africa Equity fund aims to earn profits under most market conditions.
The funds are allowed to go both long and short securities and are able to access a variety of financial instruments to control and sometimes even profit from any underlying volatility.
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