Coronation Fund Managers: Omnia profit used to buy more of HCI

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Coronation Fund Managers’s small cap fund is buying more shares in Hosken Consolidated Investments (HCI) after the manager profited from its stake in Omnia Holdings, which more than tripled in four years. “HCI was already a big position in our fund,” Siphamandla Shozi, who helps oversee Coronation’s small-cap fund, said last week. “We’ve added more over the past three months or so. Over time they’ve created value for shareholders with the investments they have done.” Coronation’s fund of small-cap stocks has returned 0.5 percent this year compared with the JSE small cap index’s 2.1 percent gain and the mid-cap index’s 3 percent fall over the same period. Coronation underwrote R300 million of Omnia’s R1 billion rights offer in 2010 as the supplier of explosives and chemicals needed capital to build a second nitric acid production facility. “We took a big stake… Omnia has done very well. We benefited a lot from it,” Shozi said. “We like the HCI story,” Shozi added. “We like the management. We like the underlying assets and think it is a very good business.” HCI shares rose 1.14 percent to close at R137.80 on Friday. – Bloomberg


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