Alternative Investments

Hedge Funds

A hedge fund is an alternative investment portfolio where the capital of retail and institutional investors is pooled together to buy and sell underlying investments to apply the hedge fund’s strategy.

South African hedge funds are governed under the Collective Investment Schemes Control Act (CISCA), in the same way as unit trust funds. However, hedge fund managers have more investment techniques that they can employ, compared traditional asset managers, to hedge risks or generate returns.

Hedge fund investments typically provide returns that are not highly correlated with traditional asset classes such as equities.

Bayswater recommends hedge fund managers and strategies that provide a diversification benefit to an investor’s overall portfolio with the aim to manage risk over a long investment horizon.

Alternative Investment Funds

Outside of traditional hedge funds, Bayswater Capital supports other Alternative Investment funds both in South Africa

and offshore. These funds can invest in a range of non-traditional assets, including but not limited to the below:

Private Credit

Taking advantage of a gap left by banking requirements to find high, stable, low-default returns in the credit market.

These funds provide steady, uncorrelated returns, unaffected by the listed market or interest rate volatility.

Commodity funds

Exploiting structural and cyclical anomalies within the commodity universe.

The objective of these funds is to invest in commodity related derivatives, indices, options and OTC traded instruments.