Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
New Managers November 2019

PROFILES: Safehouse Capital, 50 South Capital

 

Safehouse Capital launches thematic consumer fund

A new fund has launched in Dubai with a global focus on the consumer sector. Safehouse Capital is led by Sharif Farha and was started in 2018 after Farha moved on from Amwal Capital Partners where he was a senior analyst covering the consumer sector. Mahindar Kumar serves as the senior analyst, joining from star Asian mutual fund AKD Investment PK. Farha tells Opalesque New Managers that he wanted to create a thematic fund that focuses on the rise of the consumer which he believes will be a major trend over the next 20+ years.

"Dubai is a great place to be with our focus," Farha says. "You get an idea of consumer trends much faster here than other cities because the population is global and it also skews younger." He adds that there is strong demand from investors in the region for thematic funds that have a global tilt.

In terms of strategy, the long/short fund is looking for companies have proven they are able to adapt to shifting consumer trends on the long side and companies where time is running out, or are facing negative catalysts on the short side. A company like Foot Locker is an example of the adaptability Farha is looking for. Foot Locker is reckoning with less in-store traffic by revitalizing its stores and creating unique experiences for consumers to bring them back in. Lighter company Bic is an example of a recent short bet. "If you look at the trend, smoking is going down, vaping is replacing some of it. We don't see where the product growth is going to come from," he explains.

Safehouse announced a short on Aston Martin over the summer as well, citing an ill-conceived IPO and a lack of alignment with shareholder value. When asked what trends he's eyeing for 2020, Farha says gaming and esports are significant new growth areas for consumer discretionary stocks. "We're still in early innings," he says. "We expect to se......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1