Investors are looking for ways to increase return on investment. Hedge funds allow clients to pool funds together and invest in different assets. The fund managers apply complex techniques to eliminate or minimize risks and maximize capital return. In recent years, hedge funds have been growing rapidly in Kenya, meaning many people are ready to invest their money. As a result, we have compiled a list of the top 10 best performing hedge funds in Kenya.
Hedge funds in Kenya are licensed by Capital Markets Authority (CMA). The companies can be limited liability or limited partnerships. Typically, fund managers pitch strategies to investors who buy the idea and expect the fund manager to stick with the plan. The funds range from patents to common shares. The financial goals can be either long-term or short-term.
Stay tuned to know more about the best-performing hedge funds in Kenya.
Factors to Consider Before Investing in Hedge Funds in Kenya
There have been cases in Kenya where financial institutions fail to meet their obligations, collapse or are placed in receivership. In this case, investors end up losing their hard-earned money. You’re aware of some SACCOs that have vanished with their investor’s money. To prevent such occurrences, consider the following factors before investing in hedge funds in Kenya.
- Straightforward process: Ensure that the vetting process for the investment is transparent and straightforward. Check the monthly performance report, fund overview, the audited financials, and the private placement memorandum.
- Risk management strategy: Hedge fund markets can go unexpected. The fund must have a risk strategy or stop loss to ensure investors’ capital is protected. Ask for the risk management strategy before investing your money in a hedge fund.
- Transparency: The hedge fun’s management must be willing to address your concerns fully. They must also provide proof of whatever concern you have.
The following are the best hedge funds in Kenya:
1. Amana Capital
Since 2003, Amana Capital has offered financial assistance in unit trusts, wealth management, and pensions. Individuals and institutions can access the services.
The unit trusts include;
- Amana Money Market fund: The fund is inflation-proof and a good fit for investors with short-term financial goals. The investors can earn monthly.
- Amana Balanced fund: The fund allows investors to enjoy growth and income at the same time. It ensures you don’t forego growth for income.
- Amana Equity fund: The fund is best suited for individuals who want long-term growth. Investors should be ready for equity trading fluctuations.
Wealth management provides tailored investment solutions for high-net-worth investors. If you’ve investment capital of Kshs. 10 million, you can access local and offshore investment markets.
Amana Umbrella Pension plan provides an avenue for small and medium businesses to secure the future of their employees.
The company’s experienced team will walk with you to enable you to achieve your financial goals. The experts explore a wide range of investment solutions to pick the ones with good capital returns and minimum risks.
Contacts: 0721 700 076/020 235 1738.
Find Out: The Best Money Market Funds in Kenya
2. Savannah Fund
The fund is the leading technology seed company. It offers funds in the range of US$ 50,000 to US$1 million to technology companies with high growth potential.
The team working for Savannah fund is highly experienced. Over the years, the experts boast of managing successful startups and incubation projects. They’re experts in designs, marketing, and engineering.
The fund works with entrepreneurs with the target of avoiding startup mistakes. Also, it helps technology startups scale up their operations worldwide.
Savannah fund offers vital post-investment support and assistance to help accelerate growth.
Since 2012, the fund has made over 30 investments in Africa. In March 2021, the company launched a US$25 million fund for African startups. You can contact the company through firstname.lastname@example.org email.
3. Fanisi Capital
The hedge fund targets early-stage growth Small and Medium Enterprises (SMEs) in East Africa. The SMEs opportunities should be change-oriented. The main aim of the fund is to meet the capital needs of small and medium businesses with substantial development impacts. The fund has been in operation in Kenya since 2017 under the Norwegian Investment Fund.
Fanisi Capital’s investment areas are:
- Clean Energy to increase access and supply.
- Financial institutions to increase financial inclusion.
- Green infrastructure targets the improvement of essential infrastructure.
- Scalable enterprises to grow manufacturing and agribusiness companies.
The fund targets industries which post profits consistently. The funding starts from US$ 1 million.
4. Richmind Investment Limited
The fund provides investment solutions in real estate, financial instruments, and private equity. It offers market-leading capital returns to its clients.
The team involves highly qualified employees and managers. It’s among the highly trusted and fast-growing hedge funds in the country.
5. Sterling Capital
The hedge fund is among the newest in Kenya. It has been operating in the country since 2019. The fund targets investment in the SME industry in need of funding and maximizing capital returns. The main aim of the capital is to provide individual, corporate, and institutional inspired financial investment solutions.
Sterling capital provides investment solutions, including;
- Fixed-income trading allows investors to trade in government treasury bills and bonds and debt issues.
- Equities trading allows buying and selling shares of listed companies on the Nairobi Securities Exchange, public offers, and transactions advisory.
Sterling capital, in conjunction with NSE, offers clients a chance to trade online to enhance convenience. Also, it provides on-time information to enable clients to make weighted and quick investment decisions.
6. Standard Investment Bank
The Capital Markets Authority licensed the bank as a money manager in December 2018. It gives investors high returns and protects their capital from risks that lead to losses. The hedge fund invests in real estate, agribusiness projects, and government bonds.
The multi-asset strategy provides a long-term and short-term trading model. The fund invests in local and global financial markets, thus diversifying to realize clients’ capital growth.
The diversified asset classes include:
- Precious metals
- Single stocks
- Stocks indices
- Fixed and cash income
The minimum investment is Kshs 250,000 with a minimum top-up fee of Kshs 100,000 for a six-month lock-in period. The bank charges an annual 5% management fee and a performance fee of 10% on returns above the 25% hurdle rate. You can access your returns or capital within 24 to 48 hours upon request.
7. Centum Investment
The company offers investors access to diversified and quality investments. The key sectors of interest include:
Real Estate Sector
The company develops urban nodes that represent investment-grade assets of scale. The Value-creation avenues include buying land, planning and obtaining approvals, seeking third-party funding, developing infrastructure, and availing ready sites to investors.
The fund aims to increase power supply and connection in the country.
The hedge fund targets the consumer sector to offer long-term investment plans for individuals, corporates, and institutions.
Centum investment offers investment solutions to banks and asset management companies.
The portfolio involves investment in fixed income and securities instruments. The company pursues active management opportunities to deliver absolute returns despite the market conditions.
The flexibility of investment strategy plus a good focus on construction and management of the portfolio allows the team to eliminate losses and preserve capital during market drawdowns.
The experts strategize investment options. They fund opportunities with high capital returns. The company targets to bring profit while lowering losses.
8. Cytonn Investment
The investment company boasts over a century of experience. Therefore, it understands investment needs, partners with clients, and offers personal wealth creation solutions. The sectors of interest include real estate, structured advisory, and private equity.
The team involves professionals who aim at offering high-quality services to clients. The team provides innovative and differential investment solutions to clients. The investment solutions are customer-centric.
The company uses technology to manage costs and improve customer experience. Also, it combines extensive local and global markets exposure and skills to invest in high-return sectors by adopting a world-class approach to available local opportunities.
9. Bid Investment Company
The company is among the fast-growing hedge funds in Kenya. It provides quality services intending to achieve client satisfaction. The investment services offered by the company include; stock and fixed income broking.
The company’s broad client base puts it on the map among the best in the investment business. The company’s primary target is maximizing returns and reducing risks on investment.
10. AfricInvest Capital Partners
The company invests in SMEs, financial institutions, healthcare, and technology sectors. Its approach relies on a team of experts knowledgeable in diversified investment markets. The team delivers solid success by lowering risks and increasing returns on investment.
AfricInvest is a private equity firm and also a venture capital company. It offers equity and debt financing investment solutions.
The table below indicates the contacts of the 10 best hedge funds in Kenya:
|Standard Investment Bank||0777333000|
|AfricInvest Capital Partners||0728606975|
Frequently asked Questions
Why do the rich invest in hedge funds?
The rich invest in hedge funds because these funds are uncorrelated to their other investments. In this case, stock markets lose value, hedge funds might rise and thus, make them profitable.
When shopping for a hedge fund company to invest in, it’s essential to check its structure. In Limited partnerships, the partners are liable for the cash they invest. In limited liability companies, investors aren’t individually responsible for the company’s liabilities. Also, ensure that the fund manager has a license from the capital markets authority. Invest your money and get capital returns.