Peregrine Capital has been increasing its long exposure to South African equities. The hedge fund manager believes that the opportunity in local shares, particularly SA Inc counters, is being heavily underestimated by the market.
Analyst AJ Snyman said at the Meet the Managers event that uncertainty in South Africa had been especially high over the last six to eight months. The unsettled global backdrop together with a persistently weak South African economy, load shedding, the issues at Transnet and ‘massive election risk’ had severely dampened investor appetite for the local market.
‘Most investors think the future doesn’t look all that pretty,’ Snyman said.