//A CUT ABOVE THE REST – FENESTRA ASSET MANAGEMENT
WHAT DOES AN INVESTOR DO IN VOLATILE LOCAL AND GLOBAL FINANCIAL MARKETS? THE ANSWER LIES IN A THOUGHTFUL ALLOCATION OF CAPITAL THAT RESULTS IN AN AMBIVALENT ATTITUDE TOWARDS POLITICAL RISKS AND CURRENCY MOVES.
Idiosyncratic growth stocks can be an important building block in achieving this goal.The profitability of these companies is driven by their own fundamentals, rather than macro-economic shocks like the US-China trade war. This is the type of sound advice investors with Fenestra Asset Management receive from company CEO William Meyer, one of the first South Africans to acquire the highly regarded US Chartered Financial Analyst qualification.
From analysing the tactics of some of the world’s leading investment gurus to the merits of top Blue-Chip stocks, the JSE’s reliable shares and how important it is to diversify and gain exposure to the international market, Meyer consistently steers his clients away from stock-market meltdowns towards healthy returns.
INDUSTRY THOUGHT-LEADERS
As one of the country’s boutique asset-management firms, Fenestra, which was incorporated in July 1992, is able to tailor clients’ portfolios according to their individual needs. In the process, the company has helped investors avoid some of the worst calamities to hit markets in recent years, most notably the Steinhoff and African Bank disasters, as well as MTN being hit by multibillion-rand fines in Nigeria.
In 2018, Fenestra did not buy or hold any of the 20 worstperforming stocks, pointing to a significant out-performance of the market. In a recent Financial Mail article, Meyer pointed out some of the pillars of his successful approach to investing. “We are very suspicious, paranoid and focused, with 10 to 12 wellresearched shares in a portfolio. We are reluctant to invest in banking and mining, which we avoid, and we invest in companies which do not have big debt and which are easily understood.”
IDENTIFYING OPPORTUNITIES
Naspers features strongly in Fenestra portfolios, but there is also a focus on mid-cap stocks, which show value and have great potential. Currently, Meyer is driving home exposure to international shares and taking advantage of offshore opportunities.
“With the challenges facing South Africa, it is critical for investors to have an international strategy,” he says. Adding an offshore equity/currency component to a South African portfolio reduces the risk and volatility of the overall portfolio. If any single currency or country enters a bear market, an investor will be protected by a diversified portfolio.
Advising on offshore investments, Meyer says: “The best countries to invest in have fewer government regulations and interference, less government ownership, fewer trade unions, lower taxes and no foreign-exchange control.These countries spend large amounts on research and development.”
Fenestra has an enviable track record. Since inception, it has regularly outperformed the market, as measured by the ALSI (All Share Index). In recent years, its greatest successes included limiting the negative return in 2008 to less than 15%, when the ALSI showed a 26% drop after the global financial meltdown.
If you are not happy with your portfolio performance or would like a second opinion, contact Fenestra for a free review of your portfolio. For more information, call +27 21 689 7855 or email fam@mweb.co.za.