STEEN CAPITAL PARTNERS

Investment objective

The objective of the fund is to outperform the JSE allshare index by more than 5% per annum after fees over any five-year rolling period.

Investment philosophy

We invest in outstanding businesses when, and only when, we can buy at a discount to a conservatively derived fair value.

Investment process

We follow a fundamental and fact-based process that systematically sieves out companies that do not meet our quality and valuation criteria. Our process is strict, and most companies fail to make our list. When we do find companies that meet our quality and valuation criteria, we act with conviction. In some instances, we work with management to improve value delivery for shareholders. The end result is a concentrated portfolio of 8 to 15 outstanding companies, run by competent managers, trading at attractive valuations.

Who should invest

Investors who:

(i) understand and share our investment philosophy,

(ii) have a long-term investment horizon, and

(iii) enjoy owning part interests in outstanding businesses, not trading in and out of ‘stocks’.

Historical performance

The fund returned 21.1% gross (17.2% net) in its first year of operation*, outperforming the JSE’s 4.8% over the same period. Whilst we are pleased with this start, we measure investment success over five years as a minimum.

Fund manager

The fund is managed by Johann Steyn, who is also the largest single investor. Before launching the fund, Johann was managing director and head of equity research at Citigroup, and a number one-rated investment analyst for most of the period 2010-2020.

Investment terms

Fund: Steen Partners High Equity Prescient QI Hedge Fund

Retail or qualified product: Qualified

Hurdle rate: JSE all share index

High water mark: Yes

Fund open: Yes

Min investment: R1,000,000

Management fee: 1% (excluding VAT)

Performance fee: 15% (excluding VAT)

Subscription: Monthly

Lockup: No

Redemption: One calendar month