Fund man­ager

Finweek English Edition - - FUND IN FOCUS - THE FUND PREFERS

to in­vest in shares where the bal­ance sheet car­ries lit­tle debt and has a strong cash flow, ac­cord­ing to Jac­ques Pre­to­rius, a fund man­ager at Con­sil­ium Cap­i­tal.

“There aren’t a lot of ar­eas where you can find value in the do­mes­tic mar­ket to­day,” he says. “We don’t see growth on a broad base.”

As the lo­cal in­ter­est rate cy­cle starts to rise in the run-up to a po­ten­tial mon­e­tary tight­en­ing by the US Fed­eral Re­serve amid in­creased eco­nomic ac­tiv­ity, lo­cal fi­nan­cial shares may be worse off.

“There will be in­creased pres­sure on lo­cal fi­nan­cial and in­dus­tri­als as­sets, es­pe­cially on con­sumer and re­tail stocks, as the in­ter­est rate in­creases,” Pre­to­rius says.

With re­gard to the fund’s top stocks, Pre­to­rius likes Datatec as the stock is a rand hedge that gen­er­ates most of its in­come off­shore. The fund also in­vested in PSG Group dur­ing March and took profit on over the last month, ac­cord­ing to him.

“The fund has now turned to in­vest in PSG’s un­der­ly­ing as­sets, such as Zeder,” Pre­to­rius adds. He sees Zeder, which is ma­jor­i­ty­owned by PSG and in­vests in agri­cul­tural as­sets, as a de­fen­sive stock due to its large hold­ing in Pi­o­neer Foods.

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