The world is changing fast and to keep up you need local knowledge with global context.
After spending a day listening to some of SA’s smartest money managers, as I did yesterday, you’d be hard pressed to retain any money in JSE-listed shares. All the owner/managers of boutique shops in the Met CI universe said local shares are expensive. They have their highest liquidity positions in years.
But for every rule there’s an exception. When pressed to select a single stock trading below intrinsic value, the equity-focused managers offered interesting ideas. 36One founder Cy Jacobs went for Pinnacle Computer, betting corruption accusations that smashed the share price will prove groundless. Former Allan Gray star turned proprietor of newcomer Perpetua, Delphine Govender, surprised me with her selection of Illovo Sugar while First Avenue’s Hlelo Giyose also went for a low profile small cap in Metrofile.
Veteran Steve Mills of Counterpoint supported Brian Gilbertson’s Pallinghurst and former RMB CIO and now partner in Truffle, Charles Booth, said there’s value in property, especially Rebosis. Former Prudential inmate and now Blue Alpha partner Gary Quinn likes Woolworths after its Australian acquisition; and Chris Botha of Imara backed Brian Joffe to make a big difference at Adcock Ingram. Northstar’s Adrian Clayton selected offshore media group Discovery Technologies.
In a year’s time, it will be fun to look back at who was on the money. In the meantime, given the quality of those making the selections, it is worth the rest of us having a close look at all of them.
Yesterday’s top stories:
Mine strikes: not just about salaries; also ‘humiliation’ at hands of foreigners
NEASA believes Economic CODESA could be SA economy’s last hope
Legality of trading in BEE shares – FSB sticking to its guns
“Do What You Love” is Horrible Advice
Five ways to cope in a money emergency: Finding cash for a crisis
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