Why Active Management Works: Ensuring your Investments are run well

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Why Active Management Works: Ensuring your Investments are run well

With the ever-changing environment we find ourselves in, whether we are battling a world pandemic or not, ensuring your investments are run and managed correctly makes all the difference.


To illustrate the importance of Active Management, the following scenario took place two weeks’ ago.

At 11:00 South African time, one of Foundation Fund Managers’ international committee members came across a SENS Announcement detailing the possible mismanagement of a European company. This share was held by several client portfolios managed by Foundation Fund Managers.

After numerous discussions, a decision was made by the committee at 13:03 to sell all shares within the European company. By 13:08 the sale was actioned, and confirmation of the sale was received by 13:39, with all shares selling at €47.26 per share.

By the end of the day, the price of this company’s shares dropped to €17.00 per share. The following day, this company’s CEO resigned after it was established that €2 billion on the balance sheet was not only “missing”, but that it had in fact never existed in the first place!

As at 25 June 2020, this company filed an application for insolvency. Shares are now trading at €3.10 and there is a very real chance of it going to zero.

Active Management does work.

Call Hadyn at Foundation Fund Managers to get started today: 084 910 8078 or hadyn@foundationgrp.co.za 

 

 

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