Please outline your investment strategy and philosophy for the fund.
Laurium Capital is an alternative asset manager that manages or advises on a long short fund, a market neutral fund. And a long only Zimbabwe fund. The long short fund’s objective is to deliver at least seven percent per annum return above inflation on a rolling three-year basis with a low volatility and a low risk of capital loss.
What are your top five holdings at present?
The long short fund’s top holdings are Billiton, First Rand, Steinhoff, Nedcor, and Naspers. A couple of the larger shorts are Bidvest and Vodacom.
How have you positioned the fund for 2011?
We expect a 15 percent return from the SA All Share Index in 2011. The long short fund has a net equity exposure of around percent. The preferred sectors are banks and mining. We have implemented some derivative overlays to protect the downside. The market neutral fund does not take directional views and currently has about 10 intra sector pair trades.
Please provide some information around the individual/team responsible for managing the fund.
Laurium Capital was formed three years ago by Gavin Vorwerg and Murray Winckler, two former investment bankers, Winckler was CEO of Deutsche Bank in SA and Vorwerg spent the last three years with Deutsche Bank in London having responsibility for equity structuring in the Middle East and Africa.
Please provide performance of the fund.
Please outline the fee structure of the fund.
The hedge funds charge a one percent management fee and a 20 percent performance fee subject to the investor at least receiving a cash return annually. The Zimbabwe fun f charges a 1.5 percent management fee and a 15 percent performance fee.