PSG Opportunities comment - Nov 04 - Fund Manager Comment13 Dec 2004
PSG Absolute Investments (Pty) Ltd, a subsidiary of PSG Capital Limited, took over the management of the PSG Opportunities Fund as from 1 November 2004. We started the month with a total portfolio of R3.4m in cash and at the end of the month the total portfolio had grown to R39.5m, with 45% in equities and 55% in cash. With regards to investment in equities we follow a value based contrarian strategy. We do not follow the crowd and invest in those “glamour” stocks that the crowd chases, nor do we try to guess what the majority thinks the majority will think next – we search for value. True value only emerges over the long term, and when it does it rewards the patient investor. Value investors buy shares that have low prices relative to earnings, dividends, net asset value, or other measures of fundamental value. A value investment strategy may produce higher returns because it is contrarian to the following sub-optimal forms of investor behaviour:
- Extrapolating past earnings growth too far into the future. The profits of companies generally do not grow smoothly at high rates for extended periods of time, usually some form of mean reversion is observed.
- Assuming a trend in stock prices. A trend that is not supported by fundamental and reasonable valuation is not sustainable over the long term.
- Overreacting to good or bad news. Sometimes markets display irrational exuberance and other times fear and hysteria. Our methods take advantage of the emotional behaviour of investors.
- Equating a good investment with a well-run company irrespective of price. We avoid shares where the share price includes all the good news and more.
We are patient investors and wait in cash until we find appropriate undervalued shares. As long as the fundamentals underlying a share in our portfolio remain intact, any pull backs in the share price will be regarded as a buying opportunity.
PSG Opportunities comment - Apr 04 - Fund Manager Comment10 Jun 2004
The fund remained fully invested in SA gilts to take advantage of the capital growth that will be realised with the interest rate cuts in the pipeline.
Mandate Universe09 Jun 2004
Mandate Limits09 Jun 2004
PSG Opportunities comment - Mar 04 - Fund Manager Comment23 Apr 2004
The fund remained fully invested in SA gilts to take advantage of the capital growth that will be realised with the interest rate cuts in the pipeline.
PSG Opportunities comment - Feb 04 - Fund Manager Comment24 Mar 2004
The fund remained fully invested in SA gilts to take advantage of the capital growth that will be realised with the interest rate cuts in the pipeline.
PSG Opportunities comment - Jan 04 - Fund Manager Comment02 Mar 2004
The fund remained fully invested in SA gilts to take advantage of the capital growth that will be realised with the interest rate cuts in the pipeline
PSG Opportunities comment - Dec 03 - Fund Manager Comment27 Jan 2004
The fund remained fully invested in SA gilts to take advantage of the capital growth that will be realised with the interest rate cuts in the pipeline.