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Alternative Market Briefing

Visio looks to long-term opportunity from organic middle class growth in South Africa - 'there is massive potential'

Wednesday, February 24, 2010

From Kirsten Bischoff, Opalesque New York:

There are many arguments for investing in emerging markets, and one of the strongest is the explosive population growth occurring in these countries, and the subsequent resource requirements a larger consumer population will have. For $600m South African-based hedge fund firm Visio Capital, this translates to long-term investments in companies that work to fulfill the needs of the organic growth of the South African middle class population.

During a recent interview with Opalesque's Matthias Knab, Visio Founder Patrice Moyal spoke about Pan African investing and some of the areas his portfolio team is looking at to capture this growth.

Visio's focus: long-term investments Formed in 2003, Visio is one of the oldest hedge fund firms in South Africa. With multiple fund offerings, the investment strategy for is long/short equity driven by fundamental bottom-up research, focusing on individual companies and sectors. Investments are made with a long-term time horizon and can average in excess of 12 months.

In what may be a surprising fact, research by Credit Suisse Standards Securities (a joint venture between Credit Suisse and South Africa's Standard Bank), shows that on a nominal basis, performance of South African equity markets over the past century ranks the country third in terms of gl......................

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