Tue, Sep 27, 2016
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. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  2. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  3. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  4. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  5. Trend reversals lead to losses as managed futures drops 1.52% in August[more]

    Komfie Manalo, Opalesque Asia: Trend reversals in August have led managed futures traders to lose 1.52% last month according to the Barclay CTA Index compiled by BarclayHedge. The Index is up 0.62% year to dat