South Africa

Best 2022 stock picks by South African fund managers

Stock Pickers

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 PickPerformance since pickAnalystCompany
Thungela Resources142%Ricus ReedersPSG Wealth Ruimsig
Occidental Petroleum108%Jimmy MoyahaIndependent
Mediclinic47%Mark du ToitOyster Catcher Investments
Mosaic40%Ricus ReedersPSG Wealth Ruimsig
Grindrod Shipping36%Ricus ReedersPSG Wealth Ruimsig
NOV Inc31%Drikus CombrinckCapicraft
Unitedhealth26%Jean Pierre VersterProtea Capital Management
Naspers26%Jacobus BrinkNovare
Naspers26%Wayne McCurrieFNB Wealth & Investments
Grindrod Shipping25%Ricus ReedersPSG Wealth Ruimsig
Grupo Aeroportuario Centro Norte15%Drikus CombrinckCapicraft
Lockheed Martin13%Zwelakhe MnguniBenguela Global Fund Managers
WBHO13%Wayne McCurrieFNB Wealth & Investments
Woolworths10%Ashraf MohamedIndependent
African Rainbow Capital10%Graeme KörnerKörner Perspective
iShares Core High Dividend ETF9%Caroline CremenAdviceWorx
Altria9%Jean Pierre VersterProtea Capital Management
Sun International9%Deryck Janse van RensburgAnchor
Altria9%Ricus ReedersPSG Wealth Ruimsig
Nedbank9%Imtiaz SulimanSentio Capital