Fri, Feb 27, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Governance, corporate balance sheets, not political risk driving investment choices in South Africa

Tuesday, January 21, 2014

Bailey McCann, Opalesque New York:

South Africa is rapidly emerging as a leading market to invest in. The country has institutional players, established hedge funds and a steadily improving stock market. Still, as investors consider Africa political risks are often front of mind. 2013 saw consistent unrest in the Arab Spring countries, along with the continuation of the Sudanese genocide and assorted flare ups throughout the continent. So what are managers in South Africa saying?

"Over long periods of time, we found that by and large the politics don’t matter that much. To the contrary, political events often lead to knee jerk reactions, and if we are able to allocate capital as a response to some of the market's knee jerk reactions, it’s actually beneficial to our returns," explains Andre Steyn, Founder and Portfolio Manager, Steyn Capital Management at the recent Opalesque South Africa Roundtable.

Steyn focuses on long/short equities in country. "For example, we more than doubled our exposure to Zimbabwe when the stock market declined 22% in the month after the election. The election result essentially meant a continuation of the status quo, and our increased allocation at a substantially lower price has helped our return since then," he says. Early on he was a focused short seller looking for companies in South Africa that were frauds, he says today, that the country is ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Very small CTA averages 6.90% per month since April’14 inception[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: There aren’t many one-man shops around in the hedge fund world but we talked to one. Andrew S. Peskin, who is ba

  2. Investing - Top U.S. hedge funds cut Apple stakes ahead of all-time high, John Paulson holds gold ETF in Q4 but cuts back on some miners, Hedge funds exited tumbling oil company shares late last year, Some top investors exit Herbalife, Soros added shares in fourth quarter, Moore Capital boosts U.S. financial holdings, reduces China bets[more]

    Top U.S. hedge funds cut Apple stakes ahead of all-time high From Reuters.com: Top U.S. hedge fund management firms, including David Einhorn's Greenlight Capital and Philippe Laffont's Coatue Management, reduced their stakes in Apple Inc during the fourth quarter, ahead of the iPhone mak

  3. Opalesque Exclusive: Skënderbeg launches four single-manager funds with Your Wealth AG[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Skënderbeg Funds AGmvK, an investment fund for qualified investors under Liechtenstein law (umbrella fund),

  4. Opalesque Roundtable: Many Swiss investors are questioning the value proposition of hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: There is a well-known transition among investors in hedge funds between high-net-worth individuals and institutional investors, Ian Hamilton, head of the IDS Group, said during the recent

  5. UCITS HFS Index starts year on positive note with 1.09% gains in January[more]

    Komfie Manalo, Opalesque Asia: The UCITS HFS Index started the year on a positive note gains of 1.09% in January after finishing 2014 with a modest performance of 1.62%. Index provider 2n20 said th