Coronation Capital formed part of the listed Coronation Holdings Group which was founded in the early 1990’s. Post the unbundling of Coronation Fund Managers, it continued as an independent investment house, deploying proprietary capital into Private Equity and Trading. Over the past decade, their investment approach has generated consistent and above average returns.

Coronation Capital
Image source: Video Screenshot

On 1 February 2016, Coronation Capital launched a stand alone hedge fund management company. Although the hedge fund is a new business, it is part of an established group:

  • An investment committee with almost 100 years collective investment experience
  • Support of a committed seed investor with a strong balance sheet
  • Established operating infrastructure with sophisticated risk management processes and procedures
  • A tried and tested investment approach, cultivated over many years
  • Strong alignment of interests, shareholders and management team

Coronation Capital: A Hedge Fund’s Success Is Determined Pre-Launch

In the current launch phase, Coronation Capital deduced to focus on one single fund rather than a plethora of offerings. The fund has a long/short mandate, predominantly on South African equities, but it can invest across asset classes and also offshore. Since launch in Feb. 2016 until the end of October, the fund is up 6.35%, outperforming the JSE (+3.49%).

In this Opalesque.TV BACKSTAGE video, portfolio manager Michael Jacks speaks about:

  • How to learn lessons before you launch a hedge fund: Study others’ successes and failures
  • Which are the two main common features of successful hedge funds?
  • CoroCapital’s multi-layered risk management & The art of hedging: Knowing when which type of hedge will work (and when not)
  • Investment Philosophy and Investment Process
  • Why a good company is not always a good investment

Michael Jacks, BCom (Hons) CA(SA), CFA joined CoroCapital in October 2011 from G3 Fund Management. Prior to joining CoroCapital, he had 4 years experience in hedge funds working as an analyst and equity trader at G3 Fund Management and at AMB Capital. Michael is a Chartered Accountant by training and completed his articles with PKF (JHB) Inc in 2006. After Articles he was assigned to PKF’s technical department as an IFRS expert. Upon leaving PKF, Michael joined AMB Capital in the Hedge Fund division.

Article by Opalesque.tv