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 The Sharenet Daily 
Tuesday, 03 February 2015 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

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Seed Weekly - Hedge fund managers throwing their hats into the ring

Hedge fund managers throwing their hats into the ring

Globally hedge funds have a bad stigma around them, and unfortunately our local hedge funds have been painted with the same brush. While hedge funds aren’t currently regulated in South Africa, the fund managers are. Over the past year the FSB and Treasury have been working together in bringing hedge funds in under collective investment schemes regulation.

Hedge fund managers like Visio Capital and 36ONE Asset Management have both been managing unit trusts for close to 10 years with great success. The graph below shows the cumulative investment growth of the Visio BCI Actinio and 36One Met Flexible Opportunity funds. While both of the funds are in the ASISA Flexible sector, they are typically fully invested into equities.

Over this period both funds comfortably outperformed the All Share Index and the Average General Equity fund. Both fund managers build their portfolios from the bottom up by doing fundamental research on the underlying companies.

Some of the other hedge fund managers that have been making name for the last couple of years are Fairtree, Laurium, Bateleur and Tower. Sanlam has approached Capricorn, Matrix and Kaizen to manage some of the Sanlam Select funds on their behalf. Below is the trailing performance of the funds compared to their peers.

Source: Morningstar Direct

Does a hedge fund manager bring something different to table compared to a traditional fund manager?

Firstly, good hedge fund managers aren’t content with an analyst or broker report. They are not afraid to do the hard work of valuing a company themselves. They are not afraid to get on a plane or bus to go visit the company sites. They don’t only meet with the company’s management, but also meet with their competitors and suppliers. They try to understand the full value chain and where in the chain the company fits in. They do deep, thorough fundamental research on the companies.

Secondly they are used to shorting (selling) a company. A long only unit trust manager is typically only focused on finding good companies. A hedge fund manager isn’t only focused on finding good companies, they are also experienced in searching for bad companies. Therefore, they know which companies to avoid.

Thirdly, hedge fund managers are able to understand and use options in protecting capital and reducing the volatility of their funds. Not all of the hedge fund managers make use of options, but those who do know how to use them in the most cost effective way to enhance the return of their funds.

So do hedge fund managers bring something different to the table? In my opinion, yes. Their different return profiles blend well with other managers during the portfolio construction process. We make use of hedge fund managers to manage long- only strategies in the Seed Absolute Return and Seed Flexible funds.

Kind regards

Gerbrandt Kruger

021 914 4966

Tue, 03 Feb 2015
Top News
Local markets On Tuesday the JSE Overall Index continued its upward momentum gaining 1.08% carried by surging resource stocks which gained 3.93% and financials which gained 1.31%.  Full story

South Africa's power utility Eskom will implement rolling blackouts on Tuesday from 1500 GMT to 2000 GMT, the state-owned company said on its official Twitter account. Eskom had earlier on Tuesday canceled planned rolling blackouts because it had fixed technical faults on some of  Full story
Egyptian troops fired warning shots over the frontier into Gaza on Tuesday after a bomb exploded on Gaza territory near an Egyptian army convoy, Egyptian security sources said, blaming Islamist group Hamas, which denied the charge.  Full story
Five Ukrainian soldiers have been killed and 27 wounded in fighting with pro-Russian separatists in Ukraine's eastern regions in the past 24 hours, Kiev military spokesman Andriy Lysenko said on Tuesday.  Full story
Marina's brother and a close family friend have both been killed on the frontline in Ukraine's east. Now she has had to say goodbye to her husband, Ruslan, called up to fight pro-Russian separatists in Kiev's latest conscription drive.  Full story
Stock markets around the world rallied on Tuesday while the U.S. dollar fell after the new Greek government dropped calls for a write-down. . .  Full story
Gold prices fell 1 percent on Tuesday as news that the Greek government had dropped calls for a write-off of its foreign debt. . .  Full story
Hong Kong shares recouped earlier losses to end higher on Tuesday, as stronger mainland Chinese markets offset the impact of disappointing U.S. economic. . .  Full story
China stocks ended sharply higher on Tuesday after five straight days of losses, helped by financials and energy, after sentiment took a hit. . .  Full story

Japanese stocks extended early losses and fell to a 1-1/2-week low on Tuesday as the results of the new 10-year Japanese government bonds. . .  Full story
Australian shares surged to a near seven-year high on Tuesday after the central bank cut interest rates, ending doubts it will take further. . .  Full story
Global equity markets rose sharply in choppy trade on Monday on a late rally fueled by hopes for a deal on Greek debt,. . .  Full story
Gold prices came off their lows on Monday after unexpectedly weaker U.S. economic data spurred some safe-haven buying.. . .  Full story
SA Business
Dangote Flour Mills on Tuesday reported a first-quarter loss before tax of 2.98 billion naira ($15.72 mln), compared with a loss. . .  Full story
South African retailer Edcon launched a cost-cutting plan that may include jobs cuts, it said on Tuesday, as the debt-burdened. . .  Full story
State-owned development funds from Norway and Britain have teamed up to build more power plants in sub-Saharan Africa, the funds, Norfund. . .  Full story
South African power utility Eskom will implement rolling blackouts from 0800 GMT TO 2000 GMT on Tuesday due to technical. . .  Full story

South African stocks rose for the third straight session on Tuesday spurred on by investor sentiment that favoured banking and mining shares such as Anglo American Platinum.. . .  Full story
South Africa's oil and gas explorer SacOil Holdings said on Monday it may cancel an agreement to complete an appraisal on a prospective oil asset in Nigeria.. . .  Full story
South Africa's rand retreated against the dollar on Tuesday after strong gains the previous day, tracking Asian markets lower as concerns about the global economic outlook sapped investor appetite for emerging. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0051949.33554.781.08%
JSE Top 4017:0045708.71520.351.15%
JSE Gold17:001581.2722.661.45%
JSE Financial17:0043059.66557.331.31%
JSE Industrial17:0072616.7970.140.10%
JSE Indust 2517:0064183.6037.000.06%
JSE Resource17:0044839.881694.493.93%
DJ Futures19:3817410.00121.000.70%
DJ Ind19:5817531.77170.730.98%
SP 50019:582033.9113.060.65%
FTSE 10017:346873.1790.621.34%
All Ords07:395666.2079.701.43%
NZSE 5006:485781.9525.260.44%
NameTimeRPMove% Move
Gold $19:591259.17-15.66-1.23%
Gold R19:5914334.38-322.06-2.20%
Gold R/kg19:58461159-8952-1.90%
Silver $19:5917.2750.05900.34%
Platinum $19:591232.709.200.75%
Palladium $19:59786.364.860.62%
Brent Crude19:5856.233.246.11%
Rand / Dollar19:5911.3831-0.1126-0.98%
Rand / Pound19:5517.2120-0.0365-0.21%
Rand / Euro19:5513.06270.03410.26%
Rand / NZD19:598.3311-0.0594-0.71%
Rand / AUD19:558.8404-0.1210-1.35%
Yen / Dollar19:59117.3530-0.3300-0.28%
Euro / Dollar19:590.8714-0.0108-1.22%
Dollar / Euro19:591.14710.01361.20%
Pound / Dollar19:550.6601-0.0052-0.78%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 MARSHALL  135021819.26.%2000
2 TRUSTCO  3204516.36.%191780
3 IVT-N  7177712.03.%366757
4 ASSORE  1717015489.91.%199187
5 DELTA  450409.76.%4000
6 BEE-SASOL  3500029999.37.%622
7 WESCOAL  215189.14.%392276
8 TEX  1195958.64.%20925
9 RANGOLD  240198.60.%364
10 MERAFE  10288.51.%2335589
11 RCL  18651156.57.%1614019
12 ANGLOPLAT  3867223276.40.%389795
13 ARCMITTAL  25151446.07.%362793
14 MONTAUK  360205.88.%77603
15 ANCHOR  1170635.69.%726735
16 SASOL  4744424445.43.%3209298
17 KUMBAIO  2315211465.21.%315656
18 ARM   125816225.20.%134335
19 IMPLATS  80443945.15.%1499835
20 STANBANK  160387234.72.%8795963

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Major Moves Down
SharenameSaleMove% MoveVolume
1 DENEB  160-25-13.51.%7735
2 DIAMONDCP  140-20-12.50.%50252
3 ATLATSA  205-27-11.64.%2020
4 ELLIES   128-11-7.91.%2008790
5 THARISA  650-50-7.14.%22520
6 RBA  110-8-6.78.%8102
7 GIJIMA  141-9-6.00.%32918
8 FAIRVEST  160-10-5.88.%6410
9 KIBO  118-7-5.60.%80551
10 PETMIN  132-7-5.04.%1727991
11 ITLTILE  1275-50-3.77.%26082
12 CLICKS  8851-301-3.29.%580581
13 CONDUIT  150-5-3.23.%105000
14 EHSV  310-10-3.12.%1803
15 CAPITEC  38000-1129-2.89.%166714
16 PIKWIK  2384-66-2.69.%150508
17 CONVERGE  192-5-2.54.%94735
18 HOWDEN  4300-100-2.27.%21494
19 FORTRESSB  2150-50-2.27.%7270
20 BASREAD  440-10-2.22.%48936

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New Highs
SharenameSaleHighMove% MoveVolume
1 MARSHALL  1350135021819.26.%2000
2 TRUSTCO  3203204516.36.%191780
3 TEX  11951195958.64.%20925
4 STANBANK  16038160887234.72.%8795963
5 PSG  13895139904463.32.%352559
6 TFG  17398174505173.06.%913796
7 CITYLDG  13200136503502.72.%150728
8 MMIHLDGS  32123239782.49.%2991620
9 CASHBIL  19461200944612.43.%8235
10 OCEANA  11250115992252.04.%82182
11 FIRSTRAND  52505319901.74.%9575763
12 RMIH  43224376721.69.%1879210
13 NETCARE  39373937401.03.%2882872
14 TIGBRANDS  39824400863500.89.%579565
15 SIBANYE  32003395260.82.%4417112
16 RMBH  65806683450.69.%1179273
17 SUNINT  1322113289760.58.%104862
18 NEPI  1199012099550.46.%226026
19 ENX  25027910.40.%5953172
20 A-V-I  85488610280.33.%565337

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New Lows
SharenameSaleLowMove% MoveVolume
1 DENEB  160160-25-13.51.%7735
2 BCX  620300-13-2.05.%932495
3 BOWCALF  7606500.10710

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Index Summary
Index NameRPMove% Move
Top 4045,708.71520.351.15%
Mid Cap74,586.51626.030.85%
Small Cap60,612.26111.070.18%
Resource 2044,839.881694.493.93%
Industrial 2564,183.6037.000.06%
Financial 1516,468.39273.731.69%
Financial & Ind. 3068,797.16281.830.41%
All Share51,949.33554.781.08%
Oil & Gas 35,905.641849.745.43%
Mining 26,868.80878.043.38%
Gold Mining1,581.2722.661.45%
Platinum Mining36.261.363.90%
GENERAL MINING7,530.13265.403.65%
Oil & Gas Producers 19,305.80994.575.43%
Basic Materials 24,485.78739.693.11%
Chemicals 21,707.45-43.75-0.20%
Forestry & Paper 36,522.15484.231.34%
Industrial Metals 13,349.38597.534.69%
Industrials 47,804.46-47.25-0.10%
General Industrials 164.17-.95-0.58%
Consumer Goods 62,899.0941.480.07%
Automobiles & Parts 7,200.98-45.29-0.63%
Household Goods417.6771.60%
Health Care 10,946.04-120.42-1.09%
Beverages 211.95-1.73-0.81%
Index NameRPMove% Move
Food Producers 9,963.0459.030.60%
Personal Goods 967.307.290.76%
Consumer Services 15,718.09-66.75-0.42%
General Retailers 82,738.661126.901.38%
Travel & Leisure 6,488.6018.340.28%
Media 369.07-4.44-1.19%
Support Services 2,843.5611.230.40%
Telecommunications 10,354.82198.341.95%
Financials 43,059.66557.331.31%
Banks 78,164.741948.742.56%
Non-life Insurance 58,688.32497.690.86%
Life Insurance 39,272.10354.790.91%
General Financial 3,953.6157.961.49%
Technology 52,752.58-136.79-0.26%
SHARIAH TOP40 3,582.371073.08%
FTSE/JSE SHARIAH ALL3,880.40962.53%
COAL MINING13,680.915334.06%
FTSE JSE Fledgling 6,897.85170.24%
FTSE/JSE Alt X 1,543.98201.29%
RESOURCE 24,697.348953.76%
DIVIDEND PLUS244.4841.83%
FTSE/JSE RAFI 409,931.761711.75%
Capped Top 4024,409.532851.18%
Capped All Share26,349.652811.08%
JSE TABACO 8,270.72-35-0.42%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
04/02/2015RESILIENTDecember 2014 (Interim)
05/02/2015NET1UEPSDecember 2014 (Interim)
05/02/2015NET1UEPSPDecember 2014 (Interim)
05/02/2015NET1UEPSPPDecember 2014 (Interim)
05/02/2015RESGENDecember 2014 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
HUDACO30/01/1527/02/1509/03/15ZAR 3.1000
IMPL CONV29/01/1513/02/1523/02/15ZAR 250.0000
CAPPROP28/01/1513/02/1523/02/15ZAR 0.4422
FIRSTRANDB-P27/01/1513/02/1523/02/15ZAR 3.4851
ECSP A23/01/1506/02/1516/02/15ZAR 0.7671
Ex Div**
Share NameDec-DateLDTPay-DateAmount

Upcoming AGMs**
CodeCompany NameDateStatus
AWAArrowhead Properties Ltd.03/02/2015Confirmed
AWBArrowhead Properties Ltd.03/02/2015Confirmed
BAWBarloworld Ltd.04/02/2015Confirmed
BAWPBarloworld Ltd.04/02/2015Confirmed
NPKNampak Ltd.04/02/2015Confirmed

Stock Exchange News Service
03/02/201517:45REDEFINE INTERNATIONAL PLC - Grant of contingent awards under long term performa...
03/02/201517:30JSE LIMITED - Index Change Advice - 20150211 Convergenet Holdings Shares In Issu...
03/02/201517:29JSE LIMITED - CANCELLATION OF S353755 Index Change Advice - 20150211 Convergenet...
03/02/201517:25ELLIES HOLDINGS LIMITED - Dealings in securities by directors of Ellies
03/02/201517:10OLD MUTUAL PLC - Form 8.3 Disclosure
03/02/201517:09JSE LIMITED - Index Change Advice - 20150211 OneLogix Group Ltd Shares In Issue ...
03/02/201517:06JSE LIMITED - Index Change Advice - 20150211 Convergenet Holdings Shares In Issu...
03/02/201517:03JSE LIMITED - Index Change Advice - 20150211 Rebosis Property Fund Shares In Iss...
03/02/201517:00LIFE HEALTHCARE GROUP HOLDINGS LTD - Trading Statement
03/02/201516:52FORTRESS INCOME FUND LIMITED - Posting of circular and notices of scheme and gen...
03/02/201516:50ARROWHEAD PROPERTIES LIMITED - Results of annual general meeting
03/02/201516:45CONVERGENET HOLDINGS LIMITED - Kitting disposal: Update regarding fulfilment of...
03/02/201516:30OLD MUTUAL PLC - Form 8.3 Disclosure
03/02/201516:10POYNTING HOLDINGS LIMITED - Update Regarding the Composite Transaction, the Spec...
03/02/201515:49EQUITES PROPERTY FUND LIMITED - Equites - Press Release
03/02/201515:47TIGER BRANDS LIMITED - Results for Dangote Flour Mills Plc for the first quarter...
03/02/201515:46BK ONE LIMITED - Withdrawal of cautionary announcement
03/02/201515:25LIFE HEALTHCARE GROUP HOLDINGS LTD - Dealings in securities by a director and co...
03/02/201515:00PPC LIMITED - PPC003 - Interest Rate Reset
03/02/201514:36LEWIS GROUP LIMITED - TRP121: Notification of an acquisition of a beneficial int...
03/02/201514:26TRUSTCO GROUP HOLDINGS LIMITED - Dealing in securities by a director
03/02/201513:50THE STANDARD BANK OF SA LTD - Interest Rate Announcement - CLN268/CLN320
03/02/201513:30INTU PROPERTIES PLC - Notification of 2014 Annual Results
03/02/201513:24ATTACQ LIMITED - Change to the board of directors
03/02/201513:22THE STANDARD BANK OF SA LTD - Interest Rate Announcements
03/02/201513:02THE STANDARD BANK OF SA LTD - Interest Rate Announcement
03/02/201513:00SABMILLER PLC - Notification of transactions of directors, persons discharging m...
03/02/201512:38THE STANDARD BANK OF SA LTD - Interest Rate Announcement
03/02/201512:35AFRICA ETF ISSUER LTD (RF) - Africa ETF Issuer Limited (RF) - ETFPLD
03/02/201512:31BIDVESTCO LIMITED - BIDC41 - Full Capital Redemption
03/02/201512:16THE STANDARD BANK OF SA LTD - Tap Issue Announcement - SSN021
03/02/201512:01THE STANDARD BANK OF SA LTD - The Standard Bank of South Africa Limited Tap Iss...
03/02/201511:44TRUSTCO GROUP HOLDINGS LIMITED - Dealing in securities by a director
03/02/201511:26ACUCAP PROPERTIES LIMITED - Dealings by a director of a major subsidiary
03/02/201511:11RCL FOODS LIMITED - Trading statement
03/02/201510:55SOUTH AFRICAN COAL MINING HLDGS LTD - Notice of changes to the board of director...
03/02/201510:00THE FOSCHINI GROUP LIMITED - Directors dealing in Securities: Delivery & sale of...
03/02/201509:55LIFE HEALTHCARE GROUP HOLDINGS LTD - Changes to the board and directors function...
03/02/201509:15HUDACO INDUSTRIES LIMITED - Directorsand group secretary dealing in securities
03/02/201508:45ARGENT INDUSTRIAL LIMITED - Dealing in Securities by Associate of Director
03/02/201507:05MICROMEGA HOLDINGS LIMITED - Change of Company Secretary

Click here for more SENS news