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MONTHLY INSIGHTS
(31/05/2015)


Monthly reporting on Fairtree's funds, solutions and portfolios are now available to our private clients!  Please click here to view our Monthly Insights  where we report on returns, asset exposure, holdings, the market and many more.

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VISIT OUR WEBSITE

For more information on our funds and services, please visit:
www.fairtree.com
www.fairtreeinvest.com

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MARKET UNCERTAINTY:
HOW WE POSITION OUR PRIVATE CLIENTS



Hannes van den Berg
 
At the moment, the crisis in Greece, China’s slowdown and the US Federal Reserve’s expected interest rate hikes dominate our thinking from a fund management perspective. Although we are concerned about the Greek situation, an arguably larger story is the Chinese equity bear market (more on these in our Macro overview Great expectations…time to temper them?). All the perceived bad news has weighed on financial markets and could potentially unsettle the global economy. Copper hitting a six-year low, oil prices down 10% in two weeks and iron ore tumbling are just a few examples of this. Anyone might think we were in the midst of a global growth slowdown.  Read more
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NASPERS FOR THE LONG RUN


Deon Botha

"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value." – Warren Buffet

 
Much of the fund management industry concerns itself on marketing labels such as growth, value and momentum. If not careful, such distinctions can serve as distractions in the investment process. At Fairtree, our focus is simple. We seek companies that deliver solid sustainable cash returns for our investors at a price we deem fair for the probability of those cash flows increasing or decreasing over time. To counter this uncertainty we look for businesses that display certain characteristics of quality. Without quality and conviction on the future cash generation of a business we need to be compensated by paying a lower price or ‘margin of safety’. Naspers, in our view, offers a rare opportunity in an overvalued market of giving shareholders promise of growth at a sufficient margin of safety.  Read more
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GREAT EXPECTATIONS...TIME TO TEMPER THEM?


Jacobus Lacock
 
We are halfway through 2015 and it’s time to revisit our expectations for the year. Toning down expectations are never easy. You might have had plans to visit an European country, start a new business, hire more people, pass your exams with distinction or aimed to get a promotion at work. How frustrating if you had to cancel these plans because of Rand weakness, tight credit conditions, labour strikes, load shedding or a job loss.  Read more
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