SOUTHERNCROSS CAPITAL

COMPANY OVERVIEW AND TEAM

The SouthernCross Capital hedge fund strategies are co-managed by Cobus Potgieter and Wilhelm Landman, who have been working together since 2015.

The SouthernCross NCIS Market Neutral RHF was launched in 2017 and the SouthernCross Multi-strategy Prescient RIHF was launched in 2020.

Both funds have provided excellent risk-adjusted and absolute returns since inception, and across a range of market conditions.

INVESTMENT STRATEGY

The core of the strategies is the team’s expertise in corporate structure and corporate action equity arbitrage. The core equity arbitrage strategies are augmented with equity market neutral equity, short term fixed income, directional fixed income and long/short equity, combining in different proportions to produce the defensive market neutral fund and growth-orientated multi-strategy fund.

Positions are actively managed, with a focus on trading. The team embraces technology, particularly algorithmic execution, through a proprietary electronic order and portfolio management system.

SouthernCross NCIS Market Neutral RHF

The fund aims to deliver predictable cash plus returns with absolute performance in all market conditions, flourishing specifically in difficult volatile markets. The fund protects the downside outright and suffers low volatility. Investors have achieved 89% positive months since inception. The fund is uncorrelated to most asset classes and other hedge funds.

SouthernCross Multi-Strategy Prescient RIHF

The fund is positioned more aggressively than the market-neutral fund to deliver equity-like returns for moderate risk. The fund aims to outperform in all market conditions including providing relative downside protection during bear markets. The fund is moderately correlated to equity markets.

Both funds are available on all major investment platforms.

INVESTMENT TERMS

Fund: SouthernCross NCIS Market Neutral RHF
Target return: Cash +4%
Risk profile: Cautious
Management fee: 1.5% p.a. (excl VAT)
Performance fee: 20% (excl VAT) of excess above benchmark
Benchmark: Cash (Stefi call deposit rate)
High water mark: Yes
Min investment: R50,000
Min investment LISPs: Platform minimums apply
Availability: All major LISPs
Subscription: Daily
Redemption: Daily
Manager launch date: October 1, 2017

Fund: SouthernCross Multi-Strategy Prescient RIHF
Target return: Cash +6%
Risk profile: Moderate-Aggressive
Management fee: 1.5% p.a. (excl VAT)
Performance fee: 20% (excl VAT) of excess above benchmark
Benchmark: Cash (Stefi call deposit rate)
High water mark: Yes
Min investment direct: R50,000
Min investment LISPs: Platform minimums apply
Availability: All major LISPs
Subscription: Daily
Redemption: Daily
Manager launch date: August 1, 2020