Urquhart Partners

18/08/2026

In investing, no one bats a thousand, and unfortunately that has certainly been the case for us at Urquhart Partners.

Our recent quarterly update therefore also looked at some of the Fund’s detractors, including an undisclosed healthcare company.

The investment case is similar in many respects to Super Group: disposals of non-core operations have simplified the business, returned significant capital to shareholders and reduced debt.

But there is an important difference. While Super Group’s remaining operations have since improved, that has not been the case here, at least not yet.

The result? The company declined 8% during the quarter after subdued results, while the peer we held as a hedge gained 9% on stronger earnings.

Both sides of the position therefore moved against us.

This highlights an important limitation of hedging. A peer position can reduce exposure to broader sector movements, but it cannot eliminate company-specific operational risk.

The turnaround has taken longer than expected, but we believe the divergence is unlikely to persist indefinitely. The business trades at trough valuation levels, while potentially significant earn-outs and milestone payments from a previous disposal provide an additional source of value not reflected in the current share price.

Since quarter end, a further development involving the purchaser of the disposed assets has potentially added another dimension to this optionality.

The investment hasn’t worked so far.

And the disposals may be complete.

The economic story may not be.

13/08/2026

Consider this advice from Warren Buffett: bargains are rarely found when dealing with sophisticated sellers. Private equity firms generally understand what their businesses are worth and have little incentive to leave much value on the table.

07/08/2026

Continuing our series of posts based on our recent quarterly update, we look at one of the more interesting buyout positions we managed during the period: Pan African Resources’ acquisition of Emmerson Resources.

Emmerson was listed on the Australian Securities Exchange, which closes at approximately 6am South African time.

This required us to enlist one of our dedicated brokers before dawn to execute purchases, while leaving us unable to hedge the position until the South African market opened three hours later.

In a volatile gold sector, those three hours mattered.

The transaction ultimately completed on schedule. Along the way, the volatility provided opportunities to lock in an attractive annualised return while minimising non-deal risk.

This example highlights an important aspect of special situations investing: identifying the corporate event is only one part of the process. Position management, hedging and disciplined ex*****on can be equally important to the outcome.

Swipe to see special situations investing in practice. ➡️

05/08/2026

Super Group is up nicely after releasing a strong trading update today.

We recently wrote about the investment in our monthly Fund Update, where we explored some of the Fund’s key winners and losers during the second quarter. Over the coming days, we’ll be sharing some of those ideas, starting with Super Group, a good example of the type of restructuring opportunity we look for.

Over recent years, Super Group has sold SG Fleet in Australia, disposed of its German logistics business, inTime, and streamlined a number of other operations. The proceeds have been used to reduce debt and return R5.5 billion to shareholders, while management has focused on improving the efficiency of the remaining business.

We believe the company remains an interesting situation given the strength of international appetite for South African logistics assets and the potential for further strategic activity as management succession becomes an increasingly relevant consideration.

During the second quarter, Super Group gained 15%, while a peer position used as a hedge declined 4%, meaning both legs of the investment contributed positively.

The graph below illustrates Super Group’s share price performance relative to the industry peer used as a hedge.

17/07/2026

The increase in economic and geopolitical uncertainty is resulting in more corporate restructuring, takeovers and delistings – all of which give investors attractive prospects.

13/07/2026

Many thanks to African Stock Hunter for having us on the podcast.

We discussed special situations investing, corporate actions, risk management, and why we believe the current JSE environment presents attractive opportunities.

Listen here: https://open.spotify.com/episode/2xkvN1oF4MW5Vihmf3poTR

Allocator Media Podcast · Episode

11/07/2026

At an undemanding valuation, Canal+ looks like a side that has spent years scoring own goals but now finally has a manager who can turn possession into points.

02/07/2026

Some of the market's best long-term investment opportunities have emerged from corporate spin-offs.

Our latest Fund Update looks at Canal+, recently spun out of Vivendi and newly listed on the JSE, and explores whether it could prove to be another such case.

Read more: https://mailchi.mp/urquhartpartners/june26-6239694

01/06/2026

Five new buyout approaches for JSE-listed companies have emerged in recent months as corporate activity begins to pick up.

In our latest Fund Update, we examine two of the most notable transactions, Balwin Properties and Clientèle, and discuss what they reveal about the opportunities and risks available to investors in today's market.

We also provide an update on portfolio positioning and broader developments across the JSE's increasingly active corporate landscape.

Read more: https://mailchi.mp/urquhartpartners/may26-6239608?e=d3addf730d

04/05/2026

The first quarter saw a strong start for the JSE, followed by a sharp reversal amid the escalating situation in the Middle East.

In our recent update, we discuss portfolio performance, positioning, and how market conditions have shaped capital allocation decisions.

Read more:

Reviewing the first quarter, we note it was characterised by two distinct phases. The start of the year saw the JSE’s strong rally continue, led by platinum and gold counters. This reversed sharply as geopolitical tensions in the Middle East escalated, contributing to heightened volatility and a b...