| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.32% | 0.45% | 0.45% |
Steyn Capital's South African long/short equity fund returned 0.45% net in Q1 2026, significantly outperforming the JSE ALSI which declined 10.45% during a volatile quarter marked by the Iran conflict and closure of the Strait of Hormuz. The fund's defensive positioning provided downside protection through reduced gross exposure from 113% to 103% and net exposure from 69% to 59% by quarter-end. Key contributors included high-conviction positions in AECI, which reported strong earnings and operational improvements, Glencore, which benefited from higher energy prices and commodity volatility, and Pan African Resources, supported by strong gold prices. The main detractor was exposure to Naspers and Prosus, which saw widening discounts to their Tencent stakes amid negative sentiment around buyback sustainability. While geopolitical uncertainty has clouded the near-term outlook, the manager maintains their core thesis that South African equities remain materially undervalued and positioned to outperform over the longer term as market dislocations create opportunities.
South African equities 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 a near-term resolution, and, most importantly, the resumption of 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, AEG.JO, GLEN.L, NPN.JO, PAN.JO, PRX.AS | energy, Geopolitical, gold, Long/Short, Mining, South Africa, value |
AEG.JO GLEN.L PAN.JO PRX.AS NPN.JO |
Steyn Capital's South African long/short fund delivered 0.45% net returns in Q1 2026, outperforming the JSE ALSI's 10.45% decline during Iran conflict volatility. Strong performance from AECI, Glencore, and Pan African Resources offset Naspers/Prosus weakness. The fund reduced exposure amid geopolitical uncertainty while maintaining conviction that South African equities remain undervalued for long-term outperformance. |
| 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 | - | Steyn Capital delivered 18.26% net returns in 2025, powered by precious metals rally and Chinese technology holdings. Fund maintains disciplined value approach with 66% net exposure and active short hedging. Sees continued opportunities in undervalued South African equities while positioning defensively against US market concentration risks and elevated global valuations. |
| Nov 19 2025 | 2025 Q3 | 700.HK, AGL.JO, ANG.JO, COH.JO, GLEN.L, MSP.JO, PPH.JO, PRX.AS, RNI.JO, SUN.JO, ZED.JO | emerging markets, gold, Long/Short, Precious Metals, South Africa, value | - | Steyn Capital delivered 9.18% in Q3 2025, driven by precious metals rally and continued deployment into undervalued South African businesses. The manager sees exceptional value in 'SA Inc' companies as reform agenda accelerates, particularly at Transnet. Believes emerging markets including South Africa are entering multi-year outperformance period versus increasingly speculative US markets. |
| 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 Miners Gold Precious Metals Mining Production |
Platinum Group MetalsThe manager expects positive economic impact from strong PGM export prices as part of their outlook for 2026. However, the biggest detractors in March were modest exposures to Gold and Platinum stocks due to sharp declines in mining stocks during the volatile month. |
Platinum PGM Mining Exports Commodities | |
OilOil prices became a significant factor following developments in the Middle East and closure of the Strait of Hormuz. An oil short position detracted from performance as the company benefited from improved sentiment and positive leverage to higher oil prices. The manager expects low oil prices would have provided support to the local economy under normal conditions. |
Oil Energy Commodities Geopolitical Prices | |
| 2025 Q4 |
AfricaFund delivered exceptional performance with 67.21% returns in 2025, significantly outperforming the 44.7% benchmark. Portfolio companies show strong fundamentals with forward PE of 6.1x, dividend yield of 8.0%, and expected EPS growth of 19.2%. Manager emphasizes that valuations remain attractive despite strong performance, with no multiple expansion driving returns. |
Frontier Markets Emerging Markets Equities Value Growth |
LiquidityManager provides detailed analysis of liquidity challenges in African frontier markets, noting structural factors including foreign investor participation, local retail involvement, and institutional buy-and-hold behavior. Acknowledges liquidity constraints but expects improvement in current bull market environment with increased investor interest. |
Market Structure Trading Institutional Foreign Investment | |
Capital MarketsDiscussion of African capital market development including recent IPO activity in Nigeria and Kenya privatization initiatives. Notes that corporates own 24% of listed equity in Africa versus 19% in emerging markets, reducing free float. Highlights structural growth drivers from young demographics and growing pension savings pools. |
IPOs Privatization Market Development Demographics | |
| 2025 Q3 |
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 manager has a positive view on both Gold and Platinum, with exposure to selected miners sized appropriately at approximately 12% of NAV in total. |
Gold Miners Platinum Precious Metals Mining |
Emerging MarketsEmerging Markets have begun to perform strongly, in line with the manager's long-held view. The manager believes they are at the very early stages of a multi-year period of outperformance of emerging markets over US markets. The outlook for equity returns across broad emerging markets, including South Africa, remains exceptional. |
Emerging Markets Outperformance Multi-year South Africa | |
ValueThe manager continues to deploy capital in what they view as exceptional opportunities in high-quality, undervalued 'SA Inc' businesses. They believe many investors are underestimating the reform agenda's potential to unlock latent growth in the domestic economy. The opportunity-set among high-quality 'SA Inc' businesses remains extremely attractive. |
Value Undervalued SA Inc Reform |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 18, 2026 | Fund Letters | Steyn Capital FR Retail Hedge Fund | GLEN.L | Glencore | Other Industrial Metals & Mining | Diversified Metals & Mining | Bull | New York Stock Exchange | coal, Commodities Trading, Diversified Metals, energy, geopolitical, Mining, Trading Business, Volatility | Login |
| Apr 18, 2026 | Fund Letters | Steyn Capital FR Retail Hedge Fund | PAN.JO | Pan African Resources | Gold | Gold | Bull | New York Stock Exchange | All-in Sustaining Costs, earnings, gold mining, gold prices, Low-cost producer, Production Profile, South Africa | Login |
| Apr 18, 2026 | Fund Letters | Steyn Capital FR Retail Hedge Fund | PRX.AS | Prosus | Internet Retail | Interactive Media & Services | Bull | Euronext Stock Exchange | asset sales, Buyback program, China, Discount Arbitrage, Holding Company Discount, Internet, technology, Tencent | Login |
| Apr 18, 2026 | Fund Letters | Steyn Capital FR Retail Hedge Fund | NPN.JO | Naspers | Internet Retail | Interactive Media & Services | Bull | New York Stock Exchange | asset sales, Buyback program, China, Discount Arbitrage, Holding Company Discount, Internet, technology, Tencent | Login |
| Apr 18, 2026 | Fund Letters | Steyn Capital FR Retail Hedge Fund | AEG.JO | AECI | Engineering & Construction | Specialty Chemicals | Bull | New York Stock Exchange | Asset Disposal, cash flow, debt reduction, Explosives, Mining Services, South Africa, specialty chemicals, turnaround | Login |
| TICKER | COMMENTARY |
|---|---|
| AEG.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 | 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. 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. |
| 0700.HK | In Tencent itself, the market reacted negatively to an acceleration in AI-related capital expenditure. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| 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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