On My Mind

Geopolitical risks and massive market volatility are factors investors need to contend with. At times like this, the importance of planning carefully and considering offshore opportunities and idiosyncratic shares is clear.

It is critical for investors to have an international strategy. Adding an offshore equity/currency component to a South African portfolio reduces the risk of volatility in the overall portfolio.

The best countries to invest in have fewer government regulations and interference, less government ownership, fewer trade unions, lower taxes and no foreign exchange controls. A thoughtful allocation of capital that results in an ambivalent attitude towards political risks and currency moves is another way to avoid catastrophe.

Idiosyncratic growth stocks are an important building block in achieving this goal. At Fenestra we tailor client portfolios according to their individual needs, and the service is close and personal. Clients will never have to talk to a computer.

We consistently steer our clients away from risky investments and toward great companies. Since inception in 1990, Fenestra has regularly outperformed the market, as measured by the All Share Index (ALSI). In 2018, another good example, Fenestra did not buy or hold any of the worst 20 performing stocks, pointing to a significant outperformance of the market. We are very suspicious, paranoid and focused, following 100 companies with 10 to 12 well-researched shares in a portfolio.

If you are not happy with your portfolio performance or would like a second opinion, please do not hesitate to contact Fenestra for a free, independent, objective and confidential review of your portfolio.

Our Mission
Fenestra strives to be a great South African and international specialist investment group. We are driven by a passion for outstanding performance and an unwavering commitment to our philosophies and core values.

“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.” – Winston Churchill. At Fenestra, we strive to change what we can. Our clients use their success to set up legacies for the greater good. We need to remember we are custodians and stewards of our wealth, and we must act wisely.

I also love Apple CEO Tim Cook’s words in Apple’s latest results: “We’re always searching across a world of possibilities, finding those places where we can do the most good.” We are grateful. Apple helped us find the Fenestra motto for 2026.

Criteria
The criteria for investments are simple, but top of the list is honesty of management. Other key investment criteria include an established profit history, a growing market with growing margins, strong ability to generate cash and some blue-sky potential. It is also preferable if the managers are very significant shareholders.

Performance
Since inception in 1990, Fenestra Asset Management has regularly outperformed the market (as measured by the ALSI).

Words by: William Meyer

Contact details: 079 624 4031

Web: www.fenestrasa.com