Northstar quarterly market reports
The Northstar Market Report provides powerful empirical evidence as to why we are confident that our investment philosophy and process, closely followed, will deliver market beating returns for our clients over time. This work again points to controllable factors - markets move wildly, falling in and out of love with different sectors and companies, but we have a defined formula that works and we stick to our guns by only owning quality companies when they are incorrectly valued by other investors. We discuss stocks in this report, delving into our investment cases for specific securities which we own.
CURRENT QUARTERLY REPORT
2019 – Quarter 1
THE BIG PICTURE
Mining resource cycle—are we in the green, yellow or red zone?
Over the past decade, local resource shares have carried the wooden spoon on the JSE, yet over the past 3 years, the annualised return for the JSE Resource Index has been 7 times that of the JSE Financial and Industrial Index. Such a change in fortunes has catalysed resource disciples into full song. Is this the time to buy resources, or is owning resources a game of musical chairs where most of the players end up without a chair when the music stops?
FROM THE ANALYSTS: EQUITIES
Oceana — Bounty of the ocean
At Northstar Asset Management we seek to invest in companies that operate in structurally sound industries, which enjoy competitive advantages within those industries, where the management teams act in the interests of shareholders and, that behave in a socially sustainable fashion. It is our contention that Oceana ticks these boxes.
FROM THE ANALYSTS: EQUITIES
Visa — Why we continue to like visa in the midst of a dynamic payments landscape
Visa is the outright leader in a duopolistic payments industry with market share two times that of its closest rival Mastercard. Visa’s ubiquity is indisputable, with over 3.3 billion cards in issue and relationships with thousands of financial institutions and millions of merchants globally.
FROM THE ANALYSTS: FIXED INCOME
The Northstar SCI Fixed Income Fund — Mega trends with mega risks.
The South African economy, although small, has become well integrated into the global economy. The positive implication of this is that it facilitates foreign investment which supports local economic growth. Under Trevor Manual as Finance Minister, South Africa became an attractive destination for foreign capital as a result of tax reforms, fiscal discipline and the liberalisation of exchange controls.
Ramaphosa’s high wire act
Funambulism is the technical word used to describe the art of tightrope walking. Metaphorically it is used to depict a situation where a person is trying to balance two opposing views with limited room for compromise. Nothing could better describe the position that President Cyril Ramaphosa finds himself in currently.
STAFF MEMBER PROFILE
Even in a smaller, specialist asset management environment without a huge staff complement, there exists a very busy planning schedule. Northstar has clients, staff, suppliers, shareholders and other related parties that seek interactions with our firm. Tanicha diligently ensures that this occurs effectively and efficiently. She is also very involved in guaranteeing that our clients are cared for in the manner which they are owing.
QUARTERLY REPORTS ARCHIVE
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