Send to a friend

South African Long-Short Equity Portfolios

Composite Characteristics

These mandates take both long and short exposures to SA listed shares and directionally may be net long, net short or neutral.

Investment objectives

To consistently generate returns above cash over rolling one-year periods, using less than 30% net equity exposure.

Specific Restrictions

Net equity exposure less than 30% of portfolio; gross equity exposure limited to 250% of portfolio (but typically maintained below 100% of portfolio).

Differentiating Features

Mandates in the long-short equity composite necessarily involve a much shorter time horizon than most Foord portfolios, despite leveraging off the same internally generated Foord equity research. The emphasis is on utilising short exposures to reduce net equity exposure to less than 30% of portfolio, and so to achieve positive monthly returns with substantially lower volatility than evidenced by the market. When negative monthly returns do occur, they are not significant. The graph below reflects the monthly returns for the long-short equity composite as well as the annual volatility of the composite compared to the market as represented by the FTSE/JSE All Share Index. The composite’s hit rate for positive monthly returns exceeds that of the market, with less than half the recorded volatility.

Availability

Minimum segregated account size: Negotiable from R150 million

Historic Investment Returns

The investment return information reflected below is in respect of a composite of institutional mandates managed on a segregated basis.

* Cash + 1% per annum

Contact us

For more information on Foord’s capabilities or to enquire about Foord’s product range please contact:

William Fraser
021 532 6935
william.fraser@foord.co.za

Mike Soekoe
021 532 6906
mike.soekoe@foord.co.za

Paul Cluer
021 532 6925
paul.cluer@foord.co.za