Our fund has a strong value-bias and a patient approach in finding the right opportunity or achieving the desired outcome. Despite utilising the structure of a “hedge fund” in South Africa, it is important to know that a value strategy requires a stomach for volatility, as mispriced assets can take a frustratingly long time to rectify.
We have set up our structure deliberately in order to pursue the widest possible investment universe in a tax efficient structure. Our opportunity set is far broader than just equities, as we can invest in fixed income, commodities, currencies and utilise derivatives.
The bulk of the fund is the personal wealth of the portfolio manager and associates. This means that investors are fully aligned with the fund manager.
Our fees have been set to achieve the best alignment with our fellow investors. (We pay the same fees as all investors). The annual fee is 1.0% (excl. VAT) and the performance fee is 20% of performance over the hurdle on a rolling five-year basis. The hurdle is the JSE All Share Total Return Index + 2.5%. By the time we charge performance fees, our investors have outperformed the market.
Please note that this is a Qualifying Investor Hedge Fund.
For detailed thoughts on how we approach various aspects of the fund, please see below: