for subscribers

Sunil Shah: Bravo Coronation, but why Business SA silence on Nene debacle?

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Sunil Shah was the highly regarded mid/small cap fund manager at Coronation more than a decade ago. He left to pursue a passion for writing; his debut novel, White Man’s Numbers provides a fascinating insight into the underbelly of financial markets. Set in London and SA, it’s a page turner for anyone wanting to understand how characters and personalities creates imperfections in market outcomes. Shah’s occasional contributions to Biznews are always very well received. In this one, he wonders at the silence of Corporate South Africa over the Nene firing – with the exception of a man he hired, Coronation’s Chief Investment Officer Karl Leinberger. Although in truth he might have added the straight talking former JSE chief executive Russell Loubser to that tiny group. Shah offers much food for thought. And leaves us wondering whether the Nene debacle will be a subject for his next book. Given his years working inside SA financial markets, there are surely few writers better qualified to explain how these things go down. – Alec Hogg

By Sunil Shah*

Let me set the scene. It was 2002. As the Strategist and Mid/Small cap Fund Manager at Coronation, I needed to hire an analyst. A young boy/man came in for the interview, having been selected from +100 CVs. I noticed he sported a tiny tuft of hair below his lower lip. I tried not to let that put me off. I put him through the natural drill of the numbers: getting to cash flow from net profit and working his way round a company’s financial statements; how a PE ratio should be evaluated; his numeracy, his knowledge of the economy, macro-economic forces and the inter-relationships…

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
17.48
(-0.28)
ZAR/GBP
22.89
(-0.51)
ZAR/EUR
20.70
(-0.54)
ZAR/AUD
12.53
(-0.23)
ZAR/JPY
0.16
(-0.28)
Gold
1934.31
(+0.65)
Silver
25.91
(+1.07)
Platinum
938.98
(+1.07)
Brent Crude
45.32
(+2.09)
Palladium
2141.00
(+0.83)
All Share
57333.27
(-0.15)
Top 40
53037.79
(-0.17)
Financial 15
10206.50
(+0.66)
Industrial 25
75869.19
(-0.45)
Resource 10
58907.63
(-0.14)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 981 votes
It depends on how the funds are used.
74% - 6511 votes
No. We should have gotten the loan elsewhere.
15% - 1350 votes
Vote