Fund of Funds in Africa is beating the market and is also posting less correlated and volatile returns, according to hedge fund analyst PerTrac.

The firm measured HedgeNews Africa's Fund of Funds Composite Index's resilience to downward swings in the broad markets over the last two years. PerTrac found that in down markets, the index outperformed the S&P 500 total return by 42.93 percent.

PerTrac released its findings following a new agreement to add HedgeNews Africa's database to its analytics platform for investors and fund managers. Investors are increasingly looking to allocate capital to the African continent because of its growth potential and rapidly expanding middle class, according to the firm.

"The fact that PerTrac is now carrying data on African hedge funds makes it possible for us to conduct appropriate peer analysis and relative performance reporting of our single strategy funds within a standardized, credible and globally accepted framework," the managing director of the hedge fund PSG Absolute Investments, Jean-Pierre Matthews, said.

With the addition of HedgeNews Africa's database, PerTrac says it now aggregates performance results and other information about hedge funds from 11 databases.