| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.5% | 6.3% | 18.3% |
The Steyn Capital FR Retail Hedge Fund returned 18.26% net in 2025, driven primarily by precious metals exposure amid rallying gold and platinum prices. Key contributors included Valterra Platinum, AngloGold, Naspers, and Prosus, while the short book detracted 1.8% due to broad market strength. The manager maintains a positive outlook on South African equities, citing attractive valuations, supportive commodity markets, and potential for increased emerging market allocations as investors diversify away from concentrated US equity positions. Political developments around upcoming local elections and ongoing reform momentum through Operation Vulindlela are key catalysts. The fund sees abundant opportunities in undervalued South African equities, with increased corporate activity creating attractive conditions for event-driven strategies. Risk management remains disciplined through a sizeable short book providing downside protection. The portfolio ended the quarter with 66% net equity exposure across 38 long and 25 short positions, positioned to capitalize on the favorable valuation environment while maintaining prudent risk controls.
The fund targets high absolute returns by buying undervalued South African equities and shorting overvalued securities, capitalizing on attractive valuations and corporate activity while maintaining disciplined risk management through a sizeable short book.
The manager expects continued diversification away from US equities toward emerging markets including South Africa, which remain attractive due to structural drivers, historically low valuations and light investor positioning. Political developments around local elections and ongoing reform momentum will come into sharper focus. The fund is positioned to capitalize on the wide range of opportunities in undervalued South African equities while maintaining downside protection through short positions.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| 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 | - | Precious metals longs were the largest contributors to portfolio returns amid a blistering rally in gold prices, which drove the majority of local index returns. The manager continues to have a positive view on gold and maintains exposure while actively managing position sizes due to volatility. Platinum 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. The fund follows a value-oriented approach, buying securities trading materially below intrinsic values. Many high-quality South African equities remain meaningfully undervalued, creating a favorable environment for bottom-up stock selection and contributing to increased corporate activity including take-private transactions. |
| Nov 19 2025 | 2025 Q3 | PRX NA | arbitrage, emergingmarkets, reforms, SAInc, valuation | - | South African SA Inc companies remain deeply undervalued as sentiment favors rand-hedge and foreign stocks despite improving reforms, especially at Transnet. Corporate actions, delistings, and merger-arbitrage activity underscore rising private-market interest and mispriced listed assets. SA Inc represents a compelling multi-year opportunity as domestic reforms and emerging-market flows begin to normalize valuations. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
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 | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
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 |
| 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.JO | Prosus 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. |
| TEN.JO | Thungela Resources was among the top 5 detractors from performance. |
| 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 % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
