DUET Group acquires New Star’s Africa fund
London-based alternative asset management firm DUET Group has launched Africa Opportunities Fund, a portfolio acquired for a non-disclosed fee from New Star and previously sold as Heart of Africa Fund.
The long-only vehicle is managed by Dr. Ayo Salami, who is also CIO of DUET’s existing Victoire Africa Index Fund. The new fund seeks to deliver consistent capital appreciation through active management in the value of fund assets by using country/sector/stock rotation strategies. It will invest in the securities of companies operating in sub-Saharan Africa (excluding South Africa).
The Fund has a value bias and will seek to invest in companies that offer strong fundamental value given their relative risk/reward trade-off. It will concentrate on companies that have demonstrated a track record of profit and cash flows, sound business models, discount to intrinsic value and/or low P/E and relatively high dividend yield.
Salami said: “This fund presents investors with a unique opportunity to invest in sub-Saharan Africa given the current low valuation of stocks across the region whilst attractive growth opportunities are forecast, particularly in comparison to advanced economies. The combination of price declines and rising earnings has resulted in very attractive valuations that offer compelling value to the long term investor.”
New Star’s Heart of Africa Fund, which was managed by Jamie Allsopp, was wound up in March. Trading was suspended on 9 December last year after it was unable to meet redemptions owing to weakening liquidity.
