Share Portfolios

Long-term capital growth

We manage both South African portfolios (shares listed on the JSE) and Global portfolios (shares listed on various developed market stock exchanges). The minimum portfolio size is R5,000,000 (or foreign currency equivalent, i.e. roughly USD350,000 or GBP250,000). Clients open a brokerage account (in their own name) with our third-party provider, Saxo Capital Markets Direct Market Access (SCM DMA) and we are appointed to manage the portfolio on a discretionary basis. We do not liaise with the client before trading on their account and indeed do not correspond much with the client at all – our time is best spent on seeking investment opportunities according to our ‘quantamental’ investment analysis process to generate above-average long-term returns for clients. Clients who have individual share portfolios are generally liable for tax every time a gain is realised, so we do not trade often. Nonetheless, we don’t allow tax to be the dominant determinant of what to do and will sell a share when the circumstances call for it, whether above or below the purchase price and irrespective of when the share was bought in the first place. Note that we do not get involved in the tax matters of clients but that there are reports available on the SCM DMA platform for client tax purposes.

While the primary focus is on our Protea Long/Short hedge funds, we also manage individual long-only equity (share) portfolios for high net-worth clients on a discretionary basis.

Long-term capital growth

All the long-only individual share portfolios we manage have the same goal: Long-term capital growth. Such a portfolio usually doesn’t earn a lot of income (dividends and/or interest) but rather generates a return for the client through growth in the capital value of the share portfolio over the long-term. This growth is not guaranteed (since the future is inherently uncertain) and also does not happen in a straight line (due to the volatility of share prices). The client needs to have an investment horizon of at least three years, preferably considerably longer. Long-term capital growth is the only mandate that we offer, and the onus is on the client to decide whether this mandate is appropriate for their need.

Our fee for managing an individual share portfolio is a flat 1.25% (ex VAT) per annum on the value of the portfolio, with no performance fee. The retail brokerage rates we have secured from SCM DMA are very competitive at 0.25% per trade for JSE trades and 0.35% per trade for most international markets. Full details of the fees and other terms & conditions are disclosed in our Individual Share Portfolio Mandate, which you can request by emailing us at