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

Comment on this story

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

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines