Our Philosophy & Approach

What differentiates us

  • We believe all emerging markets share similar characteristics adjusted for local knowledge and nuances with South African experience as a basis
  • We live and breathe emerging markets: investment team born, reared and educated in emerging markets with proven successful investment vehicles
  • Team members have extensive personal experience of EM realities:
  1. Rapid political change amid uncertainty
  2. Currency volatility
  3. Emergence of a new middle class with demographics as key focus
  4. Same focused, close-knit team since inception
  5. Ability to leverage a diverse mix of complementary personalities, interests and skills

We believe that emerging markets share the following common traits:

  • Substantial contribution from the resource sector
  • Growing infrastructure/fixed capital investment expenditure
  • An emerging consumer class
  • Volatile stock markets
  • Great political uncertainty

Investment process

Building on the strengths of a well balanced team with a diverse skill set, Capricorn Fund Managers employs an investment process whereby investment ideas emanate from a multi-disciplinary analysis, principally macro, fundamental and momentum analysis.

The particular strength of the team is the combination through different individuals of a successful trading bias with a strong fundamental view, yielding alpha across different market conditions.

All investment ideas are vetted by the team as a whole, through a vigorous debate process, with the consequence that fundamental ideas have to possess favourable trading attributes, while the converse is also true – trading ideas have to have favourable fundamental attributes. This process, the team believes, yields the very best possible portfolio.