25 February 2019

Novare Investments, one of South Africa’s leading independent financial service providers, has received the award for the best Fund of Hedge Fund in the Multi-Strategy category for its Novare Mayibentsha Market Neutral Qualified Fund of Hedge Fund (FOHF) at the prestigious annual HedgeNews Africa awards.

Now in their 10th year, the awards are based on risk-adjusted returns for calendar-year 2018, using an established methodology that comprises net returns as well as Sharpe ratio as a measure of volatility. The award in each category ultimately goes to the fund with the highest return over 12 months, provided its Sharpe ratio is within 25% of the top Sharpe amongst the nominees.

Over the 2018 calendar year, the fund was the top fund of hedge fund within the HedgeNews Africa multi-strategy category, returning 8.3%. The Consumer Price Index (CPI) inflation was 4.5% over the same period.

The outperformance was largely due to the fund’s ability to protect against the adverse market conditions that were experienced in 2018. The allocation to fixed income and market neutral strategies through 2018 was a key component in protecting against downside events and keeping volatility low. Manager selection also contributed positively to the strong performance.

The Novare Mayibentsha Market Neutral FOHF has a moderate risk/return profile. The fund follows a multi-manager and multi-strategy investment approach. Qualitative and quantitative measures are considered in constructing the portfolio to target the fund’s investment objective.

“We are very proud to have won this award”, says Neil Verster, portfolio manager at Novare Investments.

“We follow a specialist approach to investment management with an innovative research framework. Our approach and philosophy combine to provide clients with superior products that are based on risk cognisant investment performance” commented Kagiso Mathole, portfolio manager at Novare Investments.

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