Namibia: Hedge Funds – Namibia’s Hope to Increase Market Capitalization and Liquidity
Arney Tjaronda, 10 May 2021
Over the course of years, Hedge funds has been a driving force for the Johannesburg Securities Exchange (JSE) market. They have been nicknamed the miracle boy of the JSE due to its performance, so much so that in 2020 alone- despite the pandemic-the Single Manager Composite Index was +6.19% (HedgeNews Africa, January 18, 2021). How is that so? Before answering that question, I will define what hedge funds are.
Definition of hedge funds
According to Fernando (January 24, 2021), hedge funds are alternative investment funds designed to protect investment portfolio from market uncertainty, while generating positive returns in both the ups and downs of the markets. This goal is achieved through different investment strategies to hedge while maximizing their performance. The first hedge fund was launched by Alfred Winslow in 1949. He was inspired to manage money through investment schemes and further set forth to try to minimize the risk in holding long-term stock positions by short selling other stocks. This investing innovation is now regarded to as the classic long/short equities model. Jones also employed leverage to enhance returns.
