Renewed interest in emerging market investments and the move from growth to value are reflected in the stock picks of Amplify fund manager, Omri Thomas.
21 Feb 2024
FUND MANAGERS POSITIVE ON NASPERS AND PROSUS VALUE
Investor sentiment towards Naspers and Prosus appears to be warming in early 2024 after uncertainty over Chinese tech company Tencent weighed heavily on these shares in 2023. Naspers and Prosus trade at significant discounts to Tencent, in which they have a significant shareholding, and to their own net asset value. Their inability to unlock this value, and uncertainty over Tencent and the Chinese economy, has resulted in nervousness among investors, especially given their dominance in terms of value and trade on the JSE. In December 2023, the introduction of proposed draft gaming regulations by the Chinese regulator saw Naspers lose 9.7% and Prosus lose 10.6%, while Tencent was down 13% in rand terms. But there has been some recovery in January, after fund managers bought into the dip. Managers of Amplify Investment Partners funds consider Naspers and Prosus good value at current levels, and some used the opportunity to buy.