Sun, Dec 15, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Activist investing heats up in South Africa

Wednesday, January 23, 2019

Bailey McCann, Opalesque New York:

Activist investing is becoming more popular with hedge fund managers in South Africa and they are using machine learning to help diligence companies.

Delegates at the recent Opalesque South Africa Roundtable say that fragmentation in the South African economy provides new opportunities to generate alpha with constructive activist investing. Rather than seeking to take over company boards, South African activists have been successful at pressing for changes to the business and management compensation.

Some managers have also started to use machine learning to help narrow the field of potential targets.

"What we are doing is challenging boards on things like corporate governance, management incentivization and unlocking value," said Craig French of Visio Capital. "One opportunity that recently played out was the break up of Old Mutual. The spin-off of Quilter and unbundling of their one-third Nedbank bank stake created significant value for shareholders." French sees potential targets in hospitality, hotels and gaming, as the South African economy continues to mature.

Middle and lower middle market retail stores are also possible targets for local activists. The health care sector is under scrutiny as well as South African consumers have shown a willingness to pay more for health services and expect higher quality care.

Raphael Nkomo, of Ngwedi Investment Managers, adds that using by using machine learning, his firm h......................

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. 50 South Capital & Preqin highlight emerging manager outperformance in a new report[more]

    Bailey McCann, Opalesque New York for New Managers: New data from Preqin and 50 South Capital, the investment arm of Northern Trust, shows that emerging managers are outperforming established managers by almost 4% a

  2. An academic wrecking ball aims at hedge funds[more]

    From Bloomberg: Quant investing, and indeed much of the hedge fund industry, is built on the power and freedom that come with the ability to sell short. When you short a security (borrow and then sell it, meaning you make money if the price falls and you then re-buy it), you can profit when markets

  3. PE/VC: Private equity buys $101bn of European businesses, 30 under 30 venture capital 2020: Meet the young investors backing tech's next big thing[more]

    Private equity buys $101bn of European businesses From Bloomberg: European equities' cheap valuations have turned the region into a honeypot for private-equity and arbitrage funds looking to reap double-digit returns. With the buyout firms enjoying a massive amount of dry powder, especial

  4. PE/VC: The truth about private equity fund size, US VC investment in female founders hits all-time high[more]

    The truth about private equity fund size From Institutional Investor: As the end of the year approaches, institutional investors in private markets are wrapping up work on the last few funds we need to invest in to hit our targeted annual commitment levels. You see, private equity

  5. Crypto: Almost 70 crypto hedge funds have closed this year as institutional investors shy away, Central bank talk of launching cryptocurrencies is all bluff, Thailand and Hong Kong in crypto collaboration with cross border token project, Crypto loans see solid growth, platforms attract community interest, A Bitcoiner in the Senate? Is Bakkt CEO in US govt. good or bad for crypto?, Bank of France to test digital currency in 2020[more]

    Almost 70 crypto hedge funds have closed this year as institutional investors shy away From The Block Crypto: Nearly 70 crypto-focused hedge funds that largely cater to institutional investors, such as pension funds and family offices, have closed this year. The number of new fund