Vunani CEO: Where to find value amid market volatility

Boutique Fund Management Group, Vunani, has been navigating the turbulent waters of the market with a steady hand amid the global economic uncertainties. In a recent interview with CNBC Africa, Butana Khoza, the CEO of Vunani Limited, shared insights into the current market volatility and how their funds have performed in this challenging environment. With the JSE showing slight gains today, Khoza acknowledged the prevailing market volatility, attributing it to the ongoing global economic uncertainties. Despite the challenging market conditions, Vunani has managed to stay resilient, thanks in part to their well-thought-out strategies and a bit of good fortune. The CEO highlighted that their equity funds had a strong performance in the first quarter, while their fixed interest funds were positioned well relative to global inflation trends. When it comes to their global funds, Khoza emphasized the importance of nimble movement and the ability to adjust positions with ease. By prioritizing cash reserves over derivatives, Vunani has maintained flexibility in managing their assets during turbulent times. As markets grapple with issues such as inflation, stagflation, and recession probabilities, Vunani remains focused on positioning their funds strategically. Reflecting on the pressing issues facing Vunani, Khoza pointed to low growth and high unemployment as key challenges. The CEO highlighted the need for policies that stimulate job creation and boost demand to mitigate risks of economic downturns. Additionally, logistical challenges in exporting commodities have posed constraints on taking full advantage of favorable pricing, impacting potential revenue streams and job creation opportunities. Despite these challenges, Vunani remains optimistic about investment opportunities in the market. Khoza noted that there are still prospects in resource counters and SA Inc. companies that have yet to fully recover from the disruptions caused by the COVID-19 pandemic. Emphasizing a long-term investment perspective, Vunani sees potential in South African industrial sectors and believes in taking advantage of buying opportunities for sustained portfolio growth. In discussing market outlook, Khoza emphasized the importance of playing the long game and resisting knee-jerk reactions to short-term market movements. While uncertainties loom, Vunani is focused on identifying strategic buying opportunities and securing positions that align with their long-term investment goals. As global economic conditions continue to evolve, Vunani remains committed to weathering the market volatility by staying true to their investment philosophy and leveraging their experienced team's expertise to navigate the challenging terrain.