Value Capital Partners are joining us on the podcast this week. Sam Sithole, Co-founder and CEO, and Antony Ball, Co-Founder and Non-Executive Director, are activist investors based out of Johannesburg who have a value lean. By becoming active shareholders and board members, Value Capital Partners seek to improve the value of companies through governance and management guidance. We chatted with them about what it’s like to be an activist investor in an emerging market and some of the processes they use once they join the board of a company. Juan was joined by co-host Rollo Roscow, a fund manager at Schroders.

MINUTES:
1:07 Episode Intro
1:48 Sam and Antony’s backgrounds
5:08 How do you think of the processes of activist investors in South Africa? How does it differ from the American model of activism?
10:03 What type of personality do you think lends itself well to private assets or activist investing?
13:14 Is an activist nature’s skill set natural or nurtured?
14:39 When you select a company to invest in, is there a sense that some are more receptive than others?
18:30 How has the value approach changed over the past 5 years in comparison to previous private equity approaches?
21:52 With a more concentrated investment community, how do you work with other asset managers?
25:23 How do you manage the uncertainty of convincing other stake holders that you, as an activist investor, add value? How do you gain entry to the board?
31:36 The exit process: do you ever leave the company after turning it around?
33:30 How much does price dictate your process?
35:40 When you identify the company you’d like to invest in, what team dynamic do you
have when setting up an approach?
38:40 How do maintain perspective and objectivity? How do you acknowledge a short coming?
41:08 Book Recommendations
47:17 A bad decision from process rather than luck

Book recommendations:

Dear Chairman - Casey Graham

Nelson Mandela - Long Road to Freedom

NEW EPISODES:

We release a new episodes every three weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify and other podcast players.

GET IN TOUCH:

send us a tweet: @TheValueTeam 

Important information. This podcast is for investment professionals only.

This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy.

Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.

Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. Any references to securities, sectors, regions and/or countries are for illustrative purposes only. The views and opinions contained herein are those of individual to whom they are attributed, and may not necessarily represent views expressed or reflected in other communications, strategies or funds.

The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.

Past Performance is not a guide to future performance and may not be repeated.

The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change.