People want their investments to beat the benchmarks. They want their investment decision to be a winner. And even though, as the timeline increases, the percentage of managers who outperform the market decreases; there are those who stand out from the rest. Daniel Sacks is one of those managers.
He took over the Investec Commodity Fund from Frederick White in November 2002 and over a long time period (the last five years) has managed a whopping 227.14% return. The Alsi only managed 125.34% over the same period. The fund currently has R757.1m assets under management and ranked seven out of 453 funds listed on equinox.co.za
How has he achieved these returns? He focuses his investments on companies involved in mining, minerals, energy, natural resources and other commodities.
He’s taken advantage of the 2009 commodity run with winning picks like Anglo (up 46.73% last year) and BHP Billiton (up 30.61% for 2009). He focuses predominantly on South African equity markets with only 4.86% invested offshore. One pick that didn’t perform as well was Sasol. It yielded 3.85% in 2009. In June this was one of the largest holdings in his portfolio but he reduced exposure significantly toward the end of the year. One company that features constantly in his portfolio is Exxaro. This dirty little coal player put on 45.43% in 2009 and remains impressive.
It is a little more risky, but then commodity funds can be make or break affairs. The cyclic nature of commodity stocks will boost this fund’s profit as the cycle swings up in earnest.
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