Best 2022 stock picks by South African fund managers
New research by Daily Investor revealed that Ricus Reeders from PSG Wealth, independent analyst Jimmy Moyaha, and Mark du Toit from Oyster Catcher Investments had the best stock picks in 2022.
2022 has been a brutal year for markets, with the S&P 500 falling 23% and the JSE Top 40 index declining by 13% over the last six months.
The war in Ukraine, high inflation, rising interest rates, and recession fears continue to weigh on global stock markets.
Traditional investor favourites like Meta, Netflix, Amazon, Apple, and Alphabet were particularly hard hit, which made it difficult for investors to find winners.
However, South Africa’s top fund managers and analysts have done a good job of picking stocks that outperformed the market.
Daily Investor analysed the picks from experts on JSE’s SA Stock Picks show and Business Day TV’s Stock Watch to find the best selections this year.
It revealed that Ricus Reeders from PSG Wealth Ruimsig had the best stock pick by selecting Thungela Resources on 25 February.
Thungela is a leading pure-play producer and exporter of high-quality, low-cost thermal coal in South Africa.
It started trading on the Johannesburg and London stock exchanges in June 2021 following the completion of the demerger of Anglo American’s thermal coal operations in South Africa.
Thungela offers investors access to a high-quality thermal coal business with low cash cost, high-margin assets, and a strong balance sheet.
The global energy crisis was great news for Thungela and its share price increased by over 1,000% since listing.
Although Reeders only picked it following very strong growth, Thungela still grew by 142% since February. It also rewarded investors with a R60 dividend.
Another great energy stock pick was Occidental Petroleum from independent analyst Jimmy Moyaha on 22 February.
Occidental Petroleum is a US company engaged in hydrocarbon exploration in the United States and the Middle East. It also manufactures petrochemicals in the United States, Canada, and Chile.
It is one of the companies which Warren Buffett’s Berkshire Hathaway pumped money into over the last few months.
After its most recent buying spree, Berkshire Hathaway owns more than 20% of the company.
Moyaha is clearly in good company, and his bet on Occidental Petroleum paid off handsomely.
Since suggesting it as his stock pick in February, Occidental Petroleum’s share price has increased by over 100%.
Top stock picks by South African fund managers and analysts
The table below shows the best-performing stock picks between January and March 2022 by South Africa’s top fund managers and analysts.
|Stock Pick||Performance since pick||Analyst||Company|
|Thungela Resources||142%||Ricus Reeders||PSG Wealth Ruimsig|
|Occidental Petroleum||108%||Jimmy Moyaha||Independent|
|Mediclinic||47%||Mark du Toit||Oyster Catcher Investments|
|Mosaic||40%||Ricus Reeders||PSG Wealth Ruimsig|
|Grindrod Shipping||36%||Ricus Reeders||PSG Wealth Ruimsig|
|NOV Inc||31%||Drikus Combrinck||Capicraft|
|Unitedhealth||26%||Jean Pierre Verster||Protea Capital Management|
|Naspers||26%||Wayne McCurrie||FNB Wealth & Investments|
|Grindrod Shipping||25%||Ricus Reeders||PSG Wealth Ruimsig|
|Grupo Aeroportuario Centro Norte||15%||Drikus Combrinck||Capicraft|
|Lockheed Martin||13%||Zwelakhe Mnguni||Benguela Global Fund Managers|
|WBHO||13%||Wayne McCurrie||FNB Wealth & Investments|
|African Rainbow Capital||10%||Graeme Körner||Körner Perspective|
|iShares Core High Dividend ETF||9%||Caroline Cremen||AdviceWorx|
|Altria||9%||Jean Pierre Verster||Protea Capital Management|
|Sun International||9%||Deryck Janse van Rensburg||Anchor|
|Altria||9%||Ricus Reeders||PSG Wealth Ruimsig|
|Nedbank||9%||Imtiaz Suliman||Sentio Capital|