| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.5% | 5.5% | 18.3% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 18.3% | 23.5% | 8.7% | 9.8% | 51.7% | -0.7% |
The Steyn Capital FR Retail Hedge Fund returned 18.26% net for 2025, driven primarily by precious metals exposure during a blistering rally in gold and platinum prices. The fund's largest contributors included Valterra Platinum, AngloGold, and Chinese technology holdings Prosus and Naspers, which benefited from improved sentiment toward Chinese stocks and Tencent's strong performance. The short book detracted 1.8% as broad-based strength in domestic equities pressured hedging positions. Looking ahead, the manager sees continued opportunities in undervalued South African equities while maintaining cautious positioning given elevated global risks. US equity concentration and elevated valuations present systemic risks, potentially driving diversification flows toward emerging markets including South Africa. The fund maintains 66% net equity exposure with active short book hedging, positioning for both upside participation and downside protection. Reform momentum and political developments will be key catalysts as South Africa approaches local elections, while attractive valuations and supportive commodity markets provide a favorable backdrop for bottom-up stock selection.
The fund seeks to maximize investor capital by buying securities trading materially below intrinsic value and selling short securities trading materially above intrinsic value, while maintaining disciplined risk management through active position sizing and short book hedging.
The manager expects continued diversification toward emerging markets as investors reassess US equity concentration risks. South African equities continue to trade at attractive valuations with supportive commodity markets and potential for modest global growth improvement. Political developments and reform momentum will come into sharper focus as the country approaches local government elections in late 2026 or early 2027.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 3 2026 | 2025 Q4 | AEG.JO, ANG.JO, NHM.JO, NPN.JO, PRX.AS, TEN.HK, TGO.JO | China, emerging markets, Long/Short, Mining, Precious Metals, South Africa, value | - | Gold prices drove a blistering rally that contributed significantly to portfolio returns and local index performance. The fund continues to hold exposure while actively managing… |
| Nov 19 2025 | 2025 Q3 | GLEN LN, JSE SJ, PRX NA | arbitrage, commodities, reforms, SAInc, valuation | - | The fund stresses substantial upside in domestically oriented South African companies overlooked in favor of rand hedges and global tech leaders amid AI-driven rallies. Increased… |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
ChinaChina's economic rebalancing appears to be moving forward. Market liquidity, anti-involution and a measured consumer policy are likely to drive a sustained market performance in 4Q. Fiscal support and ongoing reforms in China is supportive of a stronger currency. |
Growth Policy Currency |
GoldGold returned +65% in dollars in 2025, driven by broadening demand from central banks, professional and retail investors. Central banks now hold 24% of reserves in gold versus 23% in US Treasuries for the first time. Maintained 12% portfolio allocation throughout the year. |
Central Banks Reserves Diversification Demand | |
PlatinumPlatinum experienced strong performance alongside gold, with Valterra Platinum being the largest contributor following an accelerated book build by former parent Anglo American. The manager maintains a positive view on platinum while managing position sizes appropriately. |
Platinum PGM Valterra Anglo American Mining | |
| 2025 Q3 |
Special SituationsPortfolio heavily focused on merger arbitrage, sales processes, and corporate actions including Golden Entertainment PropCo OpCo split, Sotherly Hotels buyout with preferred conversion arbitrage, and Mount Logan Capital tender offer. |
Merger Arbitrage Sales Process Tender Offer Corporate Actions Conversion |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| AEG.JO | Construction long Aveng came under pressure during the year as further losses were recognised on two pre-pandemic problem contracts, delaying management's value unlock strategy. |
| ANG.JO | Precious Metals producer AngloGold traded up alongside the gold price. |
| NHM.JO | Northam Platinum was among the top 5 contributors to performance. |
| NPN.JO | Naspers performed strongly during the year, gaining alongside their holding in Tencent, which in addition to reporting robust results has benefitted from improved sentiment towards Chinese stocks, as well as an improving outlook for its eCommerce portfolio, which continues to perform strongly. The company continues to execute on its value-accretive open-ended buyback program at both Prosus and Naspers. |
| PRX.AS | Prosus is a core, long-term holding primarily valued for its substantial stake in Tencent, a company we believe has significant growth potential and a strong global competitive advantage. A key element of our thesis is that Prosus's current market capitalization is less than the value of its Tencent holding alone. In addition to the Tencent stake, Prosus holds an estimated $35 billion in other listed and unlisted assets. |
| TGO.JO | Casino operator Tsogo Sun continued to face pressure at its land-based operations, while failing to gain traction with its online offering. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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