Dear Investment Partner,

Herewith some feedback on one of our main and most profitable positions – Zeder Investments Ltd.

 

This position’s returns are driven by an unlocking of value through corporate actions. This forms part of a sub-strategy that we manage within Capicraft portfolios.

 

This strategy includes several “special situations” where there is a catalyst for unlocking value. The return-to-risk ratio is usually very attractive, returns are collected more quickly, and the correlation with the general markets is quite low.

 

This is not an easy strategy to execute. Those who are competent enough usually do not have the right incentives or structures to carry it out.

 

A Boutique Asset Manager like Capicraft is one of the few players that has both the capability and pursues the right business model to capture these returns for its clients.

 

Apart from the fact that the positions are sometimes purchased directly for clients, we have created a product that focuses on this strategy and that limits tax leakage – the Capicraft Compounder.

 

Most of our clients already have exposure to this product, but if you want greater exposure, or if you are not a Capicraft client but want to enjoy exclusive exposure to this product, please feel free to contact us.

 

Your Investment Partner,

Drikus Combrinck

 

Click on the link to download the Zeder document: Zeder Investments Ltd.

Click on the link to download the Afrikaans version: Zeder Investments Ltd.