Citadel hedge fund bags an award at the HedgeNews Africa Awards 2017
Acknowledgement of Citadel’s fund performance was made at the prestigious HedgeNews Africa Awards 2017 where the Citadel Multi-Strategy H4 QI Hedge Fund received the fund of hedge funds award for five-year performance.
“Our fund has returned an annualised 11.05% over the five years and has a Sharpe of 1.09, which is a measure of risk-adjusted return on investment,” says Citadel Chief Investment Officer and Director George Herman who is also the fund’s portfolio manager. “The Citadel Multi-Strategy H4 QI Hedge Fund is a multi-strategy, multi-asset class hedge fund and we aim to generate consistent positive returns that are uncorrelated to market returns using a variety of alternative strategies.”
“Winning this award is important as is demonstrates the success of our approach, particularly that it has stood the test of time over a five-year period,” he adds. “We have comfortably outperformed our benchmark of SA Cash (STeFI 3 month) + 3% p.a. for this fund.”
Awards of this calibre across the South African and broader Pan-African region offer recognition for risk-adjusted returns for hedge funds and funds of hedge funds.
“The hedge fund industry is an important one and, although relatively young in South Africa, we are already seeing its impact. Hedge funds are able to counterbalance a client’s traditional portfolio and lower an investor’s overall risk which is significant as risk can destroy value. By adding this element of diversification, clients are able to achieve returns that have no correlation with other asset classes.”
But Herman cautions investors that if they are looking for the benefits of diversification they should seek a true hedge fund which implements both long and short strategies. “Many funds are actually only long-only funds yet they charge hedge fund fees. Better risk protection as well as risk-adjusted performance can be achieved via long-short fund.”