Why Investec is still buying Steinhoff
There is an information vacuum about the group, but this should change once new management is on board
It is no surprise that the collapse of the Steinhoff share price was an uncomfortable end to what was looking like a strong year for fund managers. Steinhoff was very widely held in equity unit trusts; at a peak market cap of R290bn it was by far the largest retailer on the JSE, with strong rand hedge assets such as Conforama in France, Pep Europe and Poundland in the UK. The former CEO, Markus Jooste, was a regular visitor to the fund management houses. In his mock humility he would ask for "just a hamburger". According to research house Morningstar some of the largest holders were Old Mutual Top Companies (6.5% of the portfolio), Coronation Houseview Equity (6.4%) and Truffle General Equity (6.4%). Nedgroup Value, which is run by Foord Asset Management, held 6.2%. Amex, through Nedgroup Rainmaker and Opportunity, also held large Steinhoff holdings.Head of Sanlam equities Patrice Rassou says the group’s exposure to Steinhoff instruments largely reflects Steinhoff’s weighting in the...
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