You Win, So We Win. Again.

Mark Cliff, Head of Communications at PSG Asset Management writes that last Wednesday night saw the 16th annual Raging Bull Awards being presented at The Rotunda in Camps Bay and PSG Asset Management were notable winners.

As a rule, we don't use the PSG Angle to write about our funds. Instead, we try to focus on sharing with our readers the way we manage money, our thoughts on the markets and consequently how we are positioning our portfolios from time to time. The PSG Angle seeks to keep the financial advisors and investors who support our funds informed about what it is that is exciting us or keeping us awake at night and also to educate our readers to the PSG Asset Management investment philosophy and process.

We feel that we have a sound investment process which has served our investors well in the past and should continue to reward the patient investor into the future. The results of the application of our process is our performance and this last week saw the start of the Fund Management awards season, where past performance is recognized.

The Raging Bull Awards recognise excellence in long-term fund management and last week saw 10 Raging Bull Awards and 29 Raging Bull Certificates up for grabs.

PSG Asset Management scooped two of the 10 coveted Raging Bull Awards and were further awarded a Raging Bull Certificate.

 
Jan Mouton and Shaun le Roux with the Raging Bull Trophies 
 

Top Outright Performer

The PSG Equity Fund was recognized with a Raging Bull Certificate for being the fund with the highest total investment return of all General Equity funds over the preceding 3-years to the end of December 2011.

The PSG Equity Fund was then awarded the first Raging Bull Award of the night when it was recognized as the best broad-based domestic equity fund with the highest total investment return of ALL equity funds over the preceding 3-years.

Top Risk-Adjusted Performer

The PSG Flexible Fundwas recognized with a Raging Bull Award for being the best Domestic Asset Allocation Flexible Fund on a risk-adjusted basis, taking into account risk-adjusted returns and consistency of performance over 5- and 3-years.

Consistent, Conservative, Contrarian

Speaking after the event, PSG Asset Management Chief Investment Officer Jan Mouton said:

“The fact that not one, but two of our funds have been recognized as being the best in sector and the fact that the PSG Equity Fund was the number one best performer across all local equity funds is a  clear demonstration of the consistent application of our investment process across the portfolios we manage. The Raging Bull Awards recognize long-term performers and at PSG Asset Management we work hard at aligning our portfolios on this basis.

Being recognized as the best fund in a particular area or category also speaks about what we have done differently. PSG Asset Management is a contrarian house which focusses on buying unloved quality companies. When others are selling we often buy and vice versa.

The award of the best risk-adjusted returns for the PSG Flexible Fund also shows how important our conservative approach to managing our clients investments is. Not losing money for our clients is a very important focus and there has been so much volatility over the last few years that this fund in particular has achieved an excellent balance between risk and return.

We are very pleased that the PSG Flexible Fund has now won Raging Bull Awards for two years in a row.”

Shaun le Roux*, portfolio manager of the PSG Equity Fund said:

“We won both these two awards back in 2005 and to win them again is a great honour. The key differentiator for PSG Equity has been our consistent stock picking and I must pay tribute to all the members of our equity team who have put in the hours and hours of research to generate the investment ideas which have worked.

The patient investor who has stayed in the PSG Equity fund has been richly rewarded. Looking forward, we are excited about some really excellent ideas we are finding and which meet our investment criteria. Great companies, both in South Africa and also globally are offering attractive valuations and we feel that our portfolios are well positioned into next year and beyond.”

The great thing about the Raging Bull Awards and other events like these is that they happen at the end of a period when the investors in the winners' funds have already reaped the rewards of great performance. As significant investors in our own funds, we obviously share in the performance which all our investors have enjoyed. We got the prizes, but without you there would be nothing to collect.

We take this opportunity to share the Raging Bulls with our supporters. Thank you for your trust and be assured that we are already hard at work ensuring that the next performance can be as good.

Shaun le Roux will be one of the speakers at the upcoming PSG Outlook Roadshow for financial advisors which commences next week. The PSG Outlook will be presented at two venues in Cape Town before moving onto Bloemfontein, Johannesburg, Pretoria, Durban, Pietermaritzburg and then Port Elizabeth. To book a spot to listen to Shaun and some of the other members of the PSG Asset Management Investment Team, please go to www.psgam.co.za/events