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CML Falling

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Regular Contributor
Coronation has seved me well in the past.....But why the heck is it falling. Surely 20% holding in african bank constitutes only 1% in coronations portfolio!!!
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19 REPLIES 19
Longshot
Occasional Contributor
General Market Sell off
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Super Contributor
Well in January when they increased there holding to 20% percent their holding was worth R3 Billion now its worth R150 mil. 8 months later. If they got it this wrong, how badly are they getting other things wrong? Just a thought..
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Super Contributor
where can we find a list of their current holdings? anyone look at that yet?
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Frequent Contributor
My first purchase of CML was in March 2011 @ 1675, avg cost to date 2100. So how many things did they get correct with price now 9100+? But yes, 10% down in 3 days not lekker!
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Super Contributor
Its a puzzling question.... Bouwer, of course they are getting other things wrong!!! - if they only get 3 out of 5 decisions right they are in the top percentiles of managers - which is where you find them. If you understand their investment philosophy then there should be no concerns ...
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Super Contributor
Ok well, I actually would like to add them to a long term holding, they are excellent at what they do. Was just referring to the current market conditions. And getting it wrong is one thing, wrong by 10 - 20%. Losing 95% value in 8 months?
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Frequent Contributor
I got this email from Coronation: As you may be aware, the recent trading update released by African Bank has caused a collapse in the share price this week. In this regard, we want to confirm to you that the exposure to African Bank is not material in any of our client funds. Where held, equity exposure is very small and we have virtually no exposure to African Bank debt or money market instruments. Our flagship unit trust funds have the following total exposure (debt + equity) to African Bank: Coronation Money Market Fund: 0% Coronation Strategic Income Fund: 0% Coronation Balanced Defensive Fund: 0% Coronation Capital Plus Fund: 0% Coronation Balanced Plus Fund: 0.37% Coronation Top 20 Fund: 0.62% *% of total portfolio held in African Bank, as at close on 6 August 2014
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Regular Contributor
Thanks Brainware.
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Highlighted
InvestmentScien
New Contributor
Reputation is everything.
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Valued Contributor
sure it 0.62% EOD 6 Aug .. but what was it last week / month / year ??
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Super Contributor
Hehe,good point,Simon.
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Valued Contributor
an it not that they got this one wrong (it is actually coz they got it so very very wrong, but that another debate), for now it the spin they trying to put on it ..
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Regular Contributor
Even if they invested 3 bil in ABIL. This should be insignificant cause they currently manage over 500 billion in assets. Surely they have made more money elsewhere. Ie DAW, IMP, CVH, PGR etc.
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Regular Contributor
Surely its the repuational risk of cml that is at question.I think they have had a bull market in their favour for too long .Again after having worked in the industry ,no qualification can make you a better money manager or give you common sense as to me this is a common sense failure by CML
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Frequent Contributor
I first bought at R11... I would say they definitely get a lot more right than wrong... Long term holding for me for sure!
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Regular Contributor
What about PIC, old Mutual, Momentum, Sanlam and Liberty. all major shareholders of ABIL. Man all these big guns didnt have common sense.
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Not applicable
firstly - Werner is right, so what if they lost R1bn (but I doubt they did - check Moneyweb's article). Their exposure, if anything was probably about R100m. Drop in the ocean. Second, as a Coronation shareholder - bear in mind that it is not Coronations money that is in Abil, it is the fund they manage's money. I.e. you the unit trust holder. As far as I know, CML doesn't have any holding company structure where they take a direct stake in equity. They use contributed money. So all that a shareholder will lose, is the associated fees that they no longer get from that specific asset. - I could be wrong though
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Valued Contributor
you right on the fees they will/won't make .. but they have 20% and that stake at 1200c was worth closer to R3.6bn .. at R20 was worth R6bn
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Frequent Contributor
Just goes to show that even sometimes clever people to not do good evaluations on companies. I suppose its a good batting average if you get more wrong than right and make tons more than you loose
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