Peregrine considers splitting
Surplus cash could be used to start venture, says CEO Jonathan Hertz
The country’s oldest hedge fund operator, Peregrine Holdings, is considering a plan to split the company by using profits from its stockbroking and wealth-management units to create a new investment firm. The company, which owns half of advisory business Java Capital, had about R1.5bn of surplus cash on its balance sheet, which could be used to start the venture, CEO Jonathan Hertz, said. The board still had to make a final decision and the proposal was one of the options it was looking at, he said. "The accumulated profit that Peregrine earned over the years and hasn’t been paid out as dividends has become substantial and materially exceeds the assets that are needed to run the business," he said. The company was now "seriously considering whether to return the excess money to shareholders either directly or in the form of an investment vehicle given to shareholders that they can own". Peregrine, which had R105bn under management at the end of September 2016, is seeking ways to div...
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