Investment Philosophy
Steyn Capital Management is a value-orientated investment management firm investing in publicly traded equities in South Africa, Africa, Frontier and Emerging markets. We seek to maximize partner capital by buying securities with trading values materially lower than their intrinsic values, and by selling short or avoiding securities with trading values materially higher than their intrinsic values. Our aim is to achieve high absolute rates of return over the long term while minimizing the risk of capital loss.
Steyn Capital Management believes that trading values in the long term are determined strictly by fundamental factors, such as the level, growth and prospective use of discretionary cash flows and realizable net asset values. Notwithstanding this belief, technical, psychological, and supply/demand factors clearly influence trading values in the short term. Such temporary value dislocations create attractive opportunities for the alert, diligent, and patient investor focused on intrinsic value. We believe that an investment approach that emphasizes intrinsic value with a high margin of safety will achieve consistent absolute investment returns over the long term and safeguard capital regardless of market conditions.
Environmental, social and governance (“ESG”) factors can fundamentally influence the intrinsic value of equity securities and are therefore fully integrated into our investment process, with a particular focus on corporate governance.
Our investment portfolio will usually differ widely from those of other fund managers.