2oceansvibe News | South African and international news

Sponsored by RSAWeb rss
2ov Radio
  • Home
  • About
    • Terms and Conditions
    • Seth Rotherham
  • du Cap Collection
  • Café du Cap
  • Cabine du Cap
  • Media Packs / Advertising
  • Contact
    • Contact
    • Anonymous Tips
    • Twitter
    • Facebook
Seth Rotherham
  • Steinhoff Scandal Takes Down Its First Hedge Fund

    13 Mar 2018 by Sloane Hunter in Business, Consequence, Finance, Money, Partners, South Africa, Vibe
    Related Posts
    • Cape Town Folks – Here’s How To Invest In Your Health This Month
    • Make Sure You Don't Fall Prey To Investing's Seven Deadly Sins
    • What Investors Mean When They Talk About The 'Rule Of 72'
    • Tidy Little Payout For Christo Wiese From Steinhoff
    • South Africans Aren't Saving Anywhere Near Enough For Retirement

    When Steinhoff’s share price collapsed in December, South Africa was shooketh; how could a multinational company, with roots set firmly in the country, let us down like that?

    Since then, the company has been rocked by scandal after scandal, orchestrated in part by one Markus Jooste, who has been cooking the books since 2014.

    Now it appears that Steinhoff has claimed the life of at least one hedge fund, which elected to close “after it ended the month 32,8% lower,” reports Business Day:

    Kaizen Asset Management had decided to “wind down” its strategic-opportunities hedge fund as a result of underperformance and a reduction in assets to an “unsustainably low level”.

    “The Steinhoff scandal had a material, negative impact on the portfolio’s performance in December, given that it was one of our high-conviction positions,” Kaizen, which has since closed its doors altogether, said in a note to investors.

    Hedge funds differ from regular, long-only equity funds; they use a range of tools – such as shortening which is basically betting on a stock price to fall – to “limit risk and reduce correlation to equity and bond markets”:

    These funds are able to gear positions in their portfolios (inject debt), which can magnify losses if not properly managed. The Kaizen fund in question ended 29.6% lower in 2017 versus the top 40’s 19.5% climb.

    But the Steinhoff saga wasn’t the only short-call that affected asset managers in December: portfolios that wrongly called the ANC’s elective-conference outcome by, for example, shorting the rand or banking stocks, also took a beating.

    However, Kaizen is the only asset manager that, thanks to Steinhoff, has shut down entirely:

    The Financial Services Board had asked all asset managers to report on losses as a result of Steinhoff and would question further where losses had been significant, said Da Silva, who is the board’s deputy executive officer for financial advisory and intermediary services.

    Sheesh – makes you wonder about your retirement money, right?

    Sure, investing in a hedge fund requires big money, but if you’re new to the game it’s imperative that you seek outside financial guidance to ensure that the portfolio you are investing in is worth it. Especially when it has all the trappings of respectability, such as a name like Steinhoff.

    Consequence Private Wealth mixes unit trust funds, hedge funds and share portfolios to get the most out of your money. In addition, their expertise in both local and offshore investing blends together carefully selected fund managers with proven track records, to reflect the best of the best when it comes to market views.

    Sounds way better than going in blind – contact them here for more information.

    [source: businesslive]

    • ← Bismarck Du Plessis Involved In Pre-Match Fight With His Own Teammate [Video]
    • You Won’t See A More Brazen Cellphone Theft Than This One In Jozi [Video] →
    • Tweet
    • Tags:
    • consequence
    • consequence private wealth
    • hedge fund
    • Kaizen Asset Management
    • Steinhoff

    Latest News

    • Why They Reckon A Global Recession Is Coming

      [imagesource: EPA] According to the World Bank, in the 72 years since 1950, the world e...

    • The Rise Of Alternative Learning

      More and more people are being schooled outside of the four walls of an institution and ar...

    • This Man Could Be SA’s Least Creative Rhino Horn Smuggler

      [imagesource: Shutterstock] Rhino poaching continues to be profitable for those who get...

    • Why Crypto Investors Are Watching Interest Rates And Inflation

      [imagesource: Techonomy] The financial news has been somewhat bleak of late. However, t...

    • Plenty Of South African Touches In Idris Elba’s New Survival Thriller [Trailer]

      [imagesource: Universal Pictures] If a film along the lines of Jurassic Park had to be ...


    • 2oceansvibe Partners

    • CONTACT US
    • GOT A HOT STORY?
    • 2oceansvibe Radio
    • 2oceansvibe Media
    • Media Pack
    • Seth Rotherham
    • Café du Cap
    • Cabine du Cap
    • Cape Town City Accommodation
    • Terms & Conditions
    • Business
    • Media
    • Entertainment
    • Tech/Sci
    • World
    • Travel
    • Lifestyle
    • Sport
    • Politics
  • Follow

    2oceansvibe.com is part of the 2oceansVibe Media Group

    DMMA Logo