| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 17.2% | 1.53% | 1.53% |
Steyn Capital's QI Hedge Fund returned 1.53% net in Q1 2026, maintaining its value-oriented long/short strategy focused on South African and emerging market equities. The fund's largest contributor was AECI, which reported strong earnings and continued operational improvements through asset disposals and debt reduction. Glencore also contributed positively, benefiting from firm commodity prices and geopolitical developments in Iran that boosted energy and coal prices. However, the fund's exposure to Naspers and Prosus detracted from performance due to widening discounts to their Tencent stakes and negative sentiment around buyback sustainability. The outbreak of conflict in Iran and closure of the Strait of Hormuz introduced significant uncertainty, prompting the manager to reduce gross exposure from 152% to 148% and net exposure from 86% to 78%. While the core thesis of emerging market undervaluation remains intact for the long term, near-term performance will likely depend on geopolitical developments and their impact on energy flows and market sentiment.
Emerging market equities, and South African equities in particular, remain materially undervalued and are likely to outperform over the longer term through a value-oriented long/short strategy that exploits market dislocations.
The outlook is now far more dependent on the evolution of the situation in Iran, the length of time until a resolution, and, most importantly, the resumption of trade flows through the Strait of Hormuz. While our core thesis remains intact - that emerging market equities, and South African equities in particular, remain materially undervalued and are likely to outperform over the longer term - in the near term, risk-off sentiment and concerns around the broader impact of the conflict are likely to leave markets highly sensitive to headlines.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 18 2026 | 2026 Q1 | 0700.HK, AEL.JO, GLEN.L, NPN.JO, PAN.JO, PRX.AS | emerging markets, Geopolitical, gold, Long/Short, Mining, oil, South Africa, value |
AEL.JO GLEN.L PAN.JO NPN.JO PRX.AS |
Steyn Capital delivered 1.53% net returns in Q1 2026 despite geopolitical turmoil from Iran conflict. Strong performance from AECI and Glencore offset weakness in Naspers/Prosus positions. Manager reduced exposure amid Strait of Hormuz closure uncertainty while maintaining conviction that South African and emerging market equities remain undervalued for long-term outperformance. |
| Jan 18 2026 | 2025 Q4 | AEG.JO, ANG.JO, NHM.JO, NPN.JO, PRX.JO, TEN.JO, TGO.JO | gold, Hedge Fund, Long/Short, Platinum, South Africa, value | - | Steyn Capital delivered 18.26% net returns in 2025, led by precious metals exposure during gold and platinum rallies. The manager sees abundant opportunities in undervalued South African equities amid supportive commodity markets and potential emerging market rotation. With 66% net exposure and disciplined short book protection, the fund is positioned for continued value creation in an attractive valuation environment. |
| Nov 19 2025 | 2025 Q3 | 0700.HK, AIP.JO, ANG.JO, COH.JO, EPE.JO, GND.JO, LBR.JO, NHM.JO, PPH.JO, PRX.AS, RNI.JO, ZED.JO | emerging markets, gold, Long/Short, Reform, South Africa, value | - | Steyn Capital delivered 7.28% in Q3 2025 by deploying capital in undervalued South African businesses amid accelerating reform momentum. Precious metals rally drove performance while merger arbitrage positions provide hedging. The fund positions for multi-year emerging market outperformance over speculative US markets, maintaining 91% net exposure with substantial short protection. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
GoldPan African Resources contributed positively during the quarter, supported by strong gold prices despite a correction in March following the outbreak of war in the Middle East. The company reported strong earnings in February and continues to benefit from a healthy production profile and low all-in sustaining costs in a high gold price environment. |
Gold Gold Miners Precious Metals Mining Commodities |
OilOil positions were impacted by geopolitical developments in Iran and the closure of the Strait of Hormuz, resulting in energy price shocks. The manager exited an oil short position in early March after the company benefited from improved sentiment and positive operating leverage to higher oil prices following Middle East developments. |
Oil Energy Geopolitical Risk Middle East Commodities | |
Emerging marketsThe fund maintains exposure to global emerging markets through both long and short positions. Emerging Markets exposure contributed positively to returns in the quarter, driven primarily by the performance of the short book and Rand weakness over the period. |
Emerging Markets Global Currency Diversification | |
| 2025 Q4 |
GoldGold prices drove a blistering rally that contributed to the majority of local index returns. The manager continues to hold exposure with a positive view on gold, while actively managing position sizes due to volatility concerns in single commodity miners. |
Gold Miners Precious Metals Commodity Prices |
PlatinumPlatinum prices experienced strong performance alongside gold. Valterra Platinum was the largest contributor, benefiting from both strong PGM prices and improved free float after Anglo American's accelerated book build removed stock overhang. |
Platinum Group Metals Mining PGM | |
ChinaChinese stocks benefited from improved sentiment, with Prosus and Naspers gaining alongside their Tencent holding. The eCommerce portfolio continues performing strongly, and value-accretive buyback programs are being executed. |
Chinese Equities Tencent eCommerce | |
Emerging MarketsUS dollar weakness provided supportive backdrop for broader emerging markets, which posted their strongest calendar returns since 2017. Manager expects continued diversification toward emerging markets including South Africa due to attractive valuations and light investor positioning. |
Dollar Weakness Diversification Valuations | |
South AfricaSouth African equities continue to trade at attractive valuations with supportive commodity markets and potential for modest global growth improvement. Political developments around local government elections in late 2026/early 2027 will come into sharper focus. |
Valuations Politics Local Elections | |
| 2025 Q3 |
ValueThe fund continues to deploy capital in exceptional opportunities in high-quality, undervalued 'SA Inc' businesses. The manager believes the opportunity-set among high-quality 'SA Inc' businesses remains extremely attractive, with many investors underestimating the potential of reform agenda to unlock latent growth in the domestic economy. |
Undervalued SA Inc Reform Domestic Quality |
GoldPrecious metals continued their blistering rally in the quarter and have driven much of the local index return for the year to date. After rallying 182% for the year, Precious Metals miners now comprise almost 25% of the JSE ALSI index. The fund has a positive view on both Gold and Platinum. |
Precious Metals Rally JSE Mining Platinum | |
South AfricaThe fund focuses on South African equities with reform momentum at Transnet continuing at an encouraging pace. The manager believes many investors are underestimating the potential of the reform agenda to unlock latent growth in the domestic economy and sees exceptional opportunities in 'SA Inc' businesses. |
Reform Transnet Domestic Economy JSE Infrastructure |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 18, 2026 | Fund Letters | Steyn Capital FR QI Hedge Fund | AEL.JO | AECI | Information Technology Services | Specialty Chemicals | Bull | New York Stock Exchange | Asset Disposal, cash flow, debt reduction, materials, Mining Services, South Africa, specialty chemicals, turnaround | Login |
| Apr 18, 2026 | Fund Letters | Steyn Capital FR QI Hedge Fund | GLEN.L | Glencore | Other Industrial Metals & Mining | Diversified Metals & Mining | Bull | New York Stock Exchange | coal, Commodity Trading, Diversified Mining, energy, geopolitical, materials, Supply Shock, Volatility | Login |
| Apr 18, 2026 | Fund Letters | Steyn Capital FR QI Hedge Fund | PAN.JO | Pan African Resources | Gold | Gold | Bull | New York Stock Exchange | Gold, Low-cost producer, materials, Mining, Precious Metals, Production Profile, South Africa, Sustaining Costs | Login |
| Apr 18, 2026 | Fund Letters | Steyn Capital FR QI Hedge Fund | NPN.JO | Naspers | Internet Retail | Interactive Media & Services | Bull | New York Stock Exchange | buyback, China exposure, Communication Services, Discount Arbitrage, holding company, technology, Tencent, Value | Login |
| Apr 18, 2026 | Fund Letters | Steyn Capital FR QI Hedge Fund | PRX.AS | Prosus | Internet Retail | Interactive Media & Services | Bull | Euronext Stock Exchange | buyback, China exposure, Communication Services, Discount Arbitrage, holding company, technology, Tencent, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| AEL.JO | The largest contributor to performance during the quarter was our high-conviction long position in AECI. The company reported strong earnings, with meaningful improvement in both operational and financial performance, as the business continues to dispose of non-core assets, reduce debt and improve cash flow generation. |
| GLEN.L | Other contributors included our long position in Glencore, which performed well in the first two months of the quarter alongside firm commodity prices and appreciated further in March following the closure of the Strait of Hormuz, as the company was seen as a likely beneficiary of higher energy and coal prices, as well as increased commodity price volatility through its trading business. We used this strength to reduce the position and reallocate capital elsewhere. |
| PAN.JO | Our long position in Pan African Resources also contributed positively during the quarter, supported by strong gold prices, notwithstanding a correction in March following the outbreak of war in the Middle East. The company reported strong earnings in February and continues to benefit from a healthy production profile and low all-in sustaining costs in a high gold price environment. |
| NPN.JO | The largest detractor during the quarter was our exposure to Prosus and Naspers, both of which traded lower. This reflected a widening of the discount to their respective Tencent stakes, alongside weakness in Tencent's share price. |
| PRX.AS | The largest detractor during the quarter was our exposure to Prosus and Naspers, both of which traded lower. This reflected a widening of the discount to their respective Tencent stakes, alongside weakness in Tencent's share price. In Prosus, this was driven by negative sentiment around the sustainability of its open-ended buyback programme after the company announced that it would only partly fund the programme through the sale of Tencent shares. |
| 0700.HK | In Tencent itself, the market reacted negatively to an acceleration in AI-related capital expenditure. With the holding company discount now at historically elevated levels, we continue to believe the investment case remains highly compelling, especially as we believe that Naspers and Prosus can fund their ongoing buyback through the sale of other non-core assets. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||
