Ashburton Investments, the asset management arm of the FirstRand group, announced today that it will be spinning off the Ashburton Dynamic Equity Hedge Funds business at the end of April 2018.
There are two hedge funds in the business: the Ashburton Dynamic Equity Qualified Hedge Fund and the Ashburton Dynamic Equity Retail Investor Hedge Fund.
As of 1st May 2018, the team managing the funds will operate under their newly established standalone business called Black Mountain Investment Management.
Rudigor Kleyn, co-head of private markets at Ashburton Investments, said: “It gives us great pleasure to see the team operate on their own after a four and a half year incubation period at Ashburton.”
Joint founder of Black Mountain Investment Management Mohamed Dhorat said that with a team of 30 years of experience in total, Black Mountain Investment Management aspires to be the leading, empowered asset management and investment holding company in Southern Africa.
“The team, which also includes Ashay Deochand and Craig Lyall, offers a niche, activist style of investing that aims to bridge a widening gap in the alternative investment space between regulated hedge funds and private equity funds.
“We are very excited about continuing on our own and offering a stand apart fund that has historically been uncorrelated with the market and many of its peers.”
Ashburton Dynamic Equity Hedge Funds employs multiple equity-based strategies and invests primarily in the South African listed equity and derivatives markets. The fund focuses on building a fundamental core portfolio and applying several satellite strategies around the core.
The Ashburton Dynamic Equity Qualified Hedge Fund received the Hedge News Africa award for the best performing long/short equity hedge fund in South Africa for 2016.
The Ashburton Dynamic Equity Hedge Funds will remain on the Ashburton Management Company (RF) Proprietary Limited for a period of time before moving to a new management company and rebranding under the new company.