The hedge fund business in South Africa is still at a relatively embryonic stage, but Cadiz is confident the fund will work. “The level of sophistication in the derivatives market in South Africa has grown a lot in the last five years,” said Barkai. “There is always a buyer of risk: every time we think the risk-takers have disappeared, someone else raises their head and shows a desire to take risk.”
Hedge Fund Solutions will focus on South African equities, and target institutional clients within the country. Nick Middelmann and Arno van Wyngaarden will manage the fund.