OBSIDIAN CAPITAL

Obsidian Capital was founded in 2007 and has operated throughout as a dedicated, independent boutique asset manager. Our core philosophy and investment process have remained consistent since inception, executed by a team whose members bring over 80 years of combined experience to the strategies they run. Central to our approach is the discipline of “marrying valuation with the cycle”: we use our disciplined “5-Block” equity selection process and overlay macro judgement to ensure that our positioning reflects both where value lies and consistency in terms of the drivers that influence the investment. This produces returns that are benchmark-agnostic and, over the long run, aim to be superior. Critically, the team is substantially co-invested in the funds it manages, aligning its interests with those of our clients.

Investment beliefs

• A multi-asset framework is optimal.
• Earnings override everything in the long run; valuation alone is never enough, understanding the underlying profit drivers is what matters.
• No asset can be assessed in a vacuum; relative valuation is essential to a clearer view.
• Mean-reversion is a critical force.
• Asset rotation is a multi-year event, not a short-term trade.
• Conviction requires multiple confirmations.

Obsidian SCI Multi Asset Retail Hedge Fund
Aiming to be competitive with Balanced funds in strong markets and to protect capital in weak markets, the fund has an investible universe spanning the full range of listed global instruments.
Strategy: Multi-strategy with an absolute return focus
Currency: ZAR
Benchmark: CPI
Inception date: October 2007

Obsidian SCI Long Short Retail Hedge Fund
Aiming to outperform competing equity products in both the long and hedge fund space, the fund has a global mandate with an equity centric focus.
Strategy: Equity Long/Short
Currency: ZAR
Benchmark: CPI + 5%
Inception date: July 2008

The team
The investment team consists of Richard Simpson, Royce Long, Liam Arron, Alex Holmes, Tayler Blackbeard and Matthew Lunney. Co-founders Royce Long and Richard Simpson each spent many years in senior investment roles at RMB Asset Management before founding Obsidian Capital.