Latest News From Foord

Since its inception in 1981, Foord Asset Management has achieved considerable investment success for its clients. This success is largely due to the consistent application of an investment philosophy that strives to get the big calls right; to buy securities at the right price; to take a long-term view and to diversify the portfolios appropriately (in this regard, the portfolio managers constantly challenge themselves by asking “What if we are wrong?”).

At Foord, we have long espoused the view that volatility of investment returns is not a suitable measure of investment risk. However, the investment fraternity seems preoccupied with this flawed measure of risk in determining whether or not an investment fits a particular profile.

Many South African companies have attempted to expand overseas. The failure rate is high and only few have succeeded. One company that stands out as having made a real success of its offshore ventures is SABMiller. CAROLYN LEVIN takes a closer look at this global brewing giant.

“The January Effect” purports to be a market phenomenon in which share prices rise in the calendar month of January. An alleged effect like this should prompt the simple question, “Why?” A US-centric explanation suggests that investors seek to create tax losses in December to offset capital gains earned during the preceding 11 months; in January, these transient sale transactions are reversed, leading to rises in share prices.

Twenty years ago few would have believed that the largest mining company in the world would emerge from South Africa, yet not involve Anglo American or De Beers. BHP Billiton is that company and one that has consistently been among the largest holdings in Foord portfolios for the past five years.