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Why Invest?2022-04-22T10:57:12+00:00

To thrive in a low growth economy
you have to work harder and smarter:

Thriving in a low growth economy
Working harder and smarter:

Working Harder:

We make long term investments in small and mid-cap JSE listed companies:

Most people are passively invested in the largest listed companies. They incur a significant opportunity cost as a result. We work harder and look beyond the obvious. We invest in companies that are under the radar of most investors. Companies that are often under-researched and mispriced. We look for companies that have a sustainable competitive advantage, or a strategy to unlock trapped value, or a new project, or potential acquisition. We regularly meet with the management of companies, and gain an edge through better insight.

Working Smarter:

We invest through a smarter investment structure- a Retail Investor Hedge Fund:

Traditional unit trusts have rules that limited investment flexibility. Segregated portfolios have high degrees of tax uncertainty. Retail Investor Hedge Funds are regulated collective investment schemes, that have increased investment flexibility, and the tax certainty of a unit trust.

Track Record:

Knowledge and experience compound over time:

We have a long track record in managing a Retail Investor Hedge Fund. Performance data for the Cogito Alpha Long Short Prescient Retail Investor Hedge Fund:

Cogito Alpha
(Net in ZAR)
SWIX Allshare USD vs ZAR EUR vs ZAR
1 Year 55.7% 9.0% -1.1% -6.7%
3 Year (annualised) 24.0% 7.1% 0.3% -0.2%
5 Year (annualised) 5.1% 5.0% 1.7% 2.5%
Since Inception (annualised) 8.3% 8.0% 5.6% 3.5%
Lowest Rolling 1 Year Return -32.5% -23.4% -20.2% -19.6%
Highest Rolling 1 Year Return 89.9% 47.3% 37.6% 30.9%

Cogito: Latin [koj-i-to] ~ verb- I think, ruminate, ponder, consider, plan.

Conviction: [kən-vĭk′shən] ~ noun- the feeling of being sure that what you believe or say is true.

Working Harder:

We make long term investments in small and mid-cap JSE listed companies:

Most people are passively invested in the largest listed companies. They incur a significant opportunity cost as a result. We work harder and look beyond the obvious. We invest in companies that are under the radar of most investors. Companies that are often under-researched and mispriced. We look for companies that have a sustainable competitive advantage, or a strategy to unlock trapped value, or a new project, or potential acquisition. We regularly meet with the management of companies, and gain an edge through better insight.

Working Smarter:

We invest through a smarter investment structure- a Retail Investor Hedge Fund:

Traditional unit trusts have rules that limited investment flexibility. Segregated portfolios have high degrees of tax uncertainty. Retail Investor Hedge Funds are regulated collective investment schemes, that have increased investment flexibility, and the tax certainty of a unit trust.

Track Record:

Knowledge and experience compound over time:

We have a long track record in managing a Retail Investor Hedge Fund. Performance data for the Cogito Alpha Long Short Prescient Retail Investor Hedge Fund:

Cogito Alpha
(Net in ZAR)
SWIX Allshare USD vs ZAR EUR vs ZAR
1 Year 55.7% 9.0% -1.1% -6.7%
3 Year (annualised) 24.0% 7.1% 0.3% -0.2%
5 Year (annualised) 5.1% 5.0% 1.7% 2.5%
Since Inception (annualised) 8.3% 8.0% 5.6% 3.5%
Lowest Rolling 1 Year Return -32.5% -23.4% -20.2% -19.6%
Highest Rolling 1 Year Return 89.9% 47.3% 37.6% 30.9%

Cogito: Latin [koj-i-to] ~ verb- I think, ruminate, ponder, consider, plan.

Conviction: [kən-vĭk′shən] ~ noun- the feeling of being sure that what you believe or say is true.

Cogito Alpha Net Annual Returns ZAR

Please note: Past performance is not necessarily indicative of future performance. Performance data compiled by Cogito Capital.

Invest now?

Frequently Asked Questions:

What is a Retail Investor Hedge Fund?2021-11-30T11:01:03+00:00

A Retail Investor Hedge Fund is a regulated Collective Investment Scheme, similar to a unit trust. Unlike a unit trust, hedge funds are permitted to use leverage and take short positions. These are useful tools, that amplify investment returns, and hedge against falling markets. Retail Investor Hedge Funds have strict rules that limit concentration and leverage risk, and are designed, as their name suggests, to be ideal investment vehicles for retail investors.

What are the tax advantages of a Retail Investor Hedge Fund?2021-11-30T11:20:00+00:00

A Retail Investor Hedge Fund has all the tax certainty of a unit trust. The only tax an investor in the fund incurs is Capital Gains Tax, realised on any redemption of units in the fund. The fund incurs a dividend withholding tax on any dividends received.

What is the minimum investment amount?2021-11-30T11:20:29+00:00

The minimum lump sum investment is R100 000, and thereafter a minimum R10 000 per monthly investment.

How do I redeem my investment?2021-11-30T11:21:21+00:00

Simply email us a signed redemption form, with 30 calendar days of notice, to redeem your investment.

What are the fees charged?2021-11-30T11:21:44+00:00

Annual management fees, charged monthly, are 1.5% (plus VAT). Performance fees, charged quarterly on a high-watermark basis, are 20% (plus VAT) of the amount in excess of the performance hurdle. The performance hurdle is the JSE Shareholder Weighted All-Share Index (JSE-AFR J403). In addition to fees, the fund incurs some administration costs and finance charges. Please refer to the fund’s Total Expense Ratio disclosed in the monthly Minimum Disclosure Document.

What are the risks involved?2021-12-16T06:20:27+00:00

Although small and mid-cap companies have the ability to grow faster than large companies, they are inherently more risky. Their earnings are generally less diversified and can be more volatile. Leverage in the fund can amplify losses as well as gains, and short positions can incur larger losses than long positions. We mitigate these risks by having rigorous risk control and over-sight. For a more detailed explanation of the generic investment risks please refer to the following document: What are the risks involved?

Who is Cogito Capital?2021-11-30T11:22:42+00:00

Cogito Capital is an Category IIA investment manager. It is authorised to manage hedge funds by the Financial Services Conduct Authority, in terms of the FAIS Act. Cogito Capital is jointly owned by Anthony Durham and Walter Grindrod. Anthony Durham is the key individual and fund manager, Walter Grindrod manages risk oversight and business development.

Who is Prescient?2021-11-30T11:23:07+00:00

Prescient is a fund administrator. Its services include portfolio valuations, administration and reporting, investment mandate and regulatory compliance monitoring, and Collective Investment Scheme hosting. For more information on Prescient please follow this link: www.prescient.co.za/our-services/platform-administration-services/

What is the Relationship between Cogito Capital, the Fund and Prescient?2021-11-30T11:23:37+00:00

The fund is a licenced Collective Investment Scheme. Cogito Capital has the mandate to manage the fund. Prescient hosts the fund on its licensed Collective Investments Scheme platform. Prescient provides a portfolio valuation, administration and reporting service to the fund. It also ensures mandate and regulatory compliance.

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