In a HedgeWeek release, 'Report: SA Hedge Funds Growing', reporter Simon Gray says, "Industry members predict that the current soaring growth rate will be maintained for some time, pointing to plentiful capacity available in existing funds and a level of allocation to alternative assets which remains well below those in other markets."

Gray predicts that factors are set to change to the benefit of South African managers, many of which are now developing the extended track records of success that conservative institutions are looking for.

"The industry is becoming broader and more sophisticated as established asset managers launch alternative products, and the dominance of equity long/short and market neutral strategies gradually diminishes while the asset share of multistrategy funds soars." Gray concluded.