CI Capital to launch Egypt’s first equity hedge fund

CI Capital Asset Management plans to launch what it expects to be Egypt’s first equity-focused hedge fund before the end of 2026, targeting EGP250 million in assets in its first year.

The fund will be offered to both retail and institutional investors and is designed to provide more flexible equity strategies than conventional mutual funds. Amr Abol Enein, the firm’s managing director, expects demand from individual and institutional clients for products that use a wider set of trading tools.

The Financial Regulatory Authority introduced a new framework that allows local hedge funds to use derivatives and to trade on margin. Short selling will be permitted once market infrastructure for stock borrowing, custody and settlement is in place.

CI Capital has set a first-year assets-under-management target of EGP250 million and described that figure as an initial goal for the product in Egypt’s developing alternative-fund segment. The firm has not disclosed detailed strategy rules, fee structures or an exact launch date beyond the end-2026 target.

Market participants say additional operational steps — including formal rules for short-selling and enhancements to custody and clearing systems — are required before some strategies can be fully implemented. Regulators introduced the framework to broaden the range of investment products available in Egypt and to allow managers to use derivatives and leverage.

CI Capital expects the planned fund to be an early example for other local managers as the regulatory framework and market infrastructure develop.