David’s role encompasses the research, development and implementation of Bellwood Capital’s equity investment strategies, proprietary models and systems.
A recent report found that South African High Net Worth Individuals (HNWIs) substantially increased the share of their assets allocated to equities from 23% in 2007 to 28% in 2017, with the majority of this growth in equity exposure having been through increased foreign equity allocations. Although local political uncertainty likely played a role in […]
Over the last decade, Netflix, the world’s largest online TV subscription service, has grown its revenues roughly 10 times, its earnings per share 15 times and its share price nearly 100 times. Netflix has become a household name and an investor favourite, earning its place among the market’s most high-flying tech stocks, the FAANGs. But […]
With local news agendas often dominated by the rand’s dismal performance, GDP woes and an economy slipping into a technical recession – South African investors are increasingly seeking shelter via offshore exposure. But with easy access to foreign markets, investors need to seriously consider the implications of counting on locally listed rand-hedge stocks as a […]
Wealthy South Africans have more than 83% of their wealth concentrated locally and many are missing the benefits of being true global investors. South Africa represents less than 1% of the global investment opportunity set, has significant political and currency risks and is subject to capital controls. Most of the nation’s high-net-worth individuals (HNWIs) are […]
Last month we came across a chart on Twitter, posted by Michael Antonelli of Baird, which caught a fair amount of attention: The chart shows how the US has dominated stock market returns in 2018. As of 30 September the S&P 500 has returned 10.6% year-to-date (YTD) in USD while the MSCI AC World ex-USA […]
We came across an interesting product recently launched by a South African company – the world’s first equity fraud insurance. This insurance covers investors against losses suffered as a result of fraud or management impropriety. The idea is that investors pay a small percentage of their portfolio value as a regular premium, and are then […]
We closed 3 successful investments in the last quarter: Robert Half International (+60% in 2 years), Kakaku.com (+84% in under a year) and Urban Outfitters (+82% in 2 and a half years). While Robert Half and Kakaku rewarded us from the outset, it was Urban Outfitters that gave most of our clients their first real […]
When it comes to long-term investment performance, two of the biggest advantages an investor can have are 1) a Strong Investment Process, and 2) Low Costs. We stress the importance of both in every presentation we do. They are two of the fundamental pillars around which we have built our business. Good investment managers should […]
In our June 2017 piece, What to Expect from a Good Portfolio, we demonstrated how the ultimate driver of long-term performance for a static portfolio is Sustainable Return – i.e. the fundamental growth of the underlying businesses, measured in terms of revenue, earnings, etc., including capital returned to shareholders. We also demonstrated how even the […]
In his recent study entitled Do Stocks Outperform Treasury Bills?, Professor Hendrik Bessembinder of Arizona State University came to the conclusion that of the nearly 26 000 stocks listed in the United States since 1926, only 42.6% have outperformed treasury bills over their lifetimes. Further, only 4% of these companies account for all net stock market […]