Mango Capital’s dedicated Africa fund enjoyed its best month ever, with the dollar class adding 10.5% for the month to leave the fund with a 13.2% gain so far this year.
Mango’s Marc Wesseling attributed the strong October performance to a gain in diversified investment company Lonrho, its largest position, which he says is starting to get recognition for being a tightly run set of fast growing businesses across Africa. Its number three stock, independent gas and oil company Afren, gained 10% during the month as investors appreciated their acquisition of a Nigerian oil field from Shell.
Wesseling added that the Nigerian banking sector is gaining traction on decent third-quarter numbers, with the fourth quarter looking promising. The fund’s Kenyan holdings also continued to show excellent performance, especially in the banking sector.
Wesseling says IPO activity has been picking up right across the fund’s geography and he is planning on participating in some of the more interesting deals on offer.
The fund’s largest holdings by sector are currently in the mining sector as well as energy and conglomerates, with Nigeria, Pan Africa and Kenya its biggest holdings by geography.
The fund now has around €27 million under management, offering both euro and dollar classes. Copyright. HedgeNews Africa – November 2010.