Staff Reporter
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/ 27 May 2008

To hedge or not to hedge?

Cannon Asset Managers’ chief investment officer Adrian Saville says during volatile times investors often rush into hedge funds seeking protection. "But these have proved to be almost as volatile as equity markets with much lower rates of return. The experience of January 2008 comes to mind, when stock markets around the globe traded lower and hedge funds saw losses in that month too," he says.

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/ 27 May 2008

Getting back to basics

The tendency to deal with empowerment as a system of scorecard compliance impedes transformation because there is no values-based leadership in such an exercise. Scores do not achieve wholesome change or a new way of doing business — sustainability cannot be achieved that way.

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/ 27 May 2008

On the fast track to success

When I first call <i>Car Torque</i> presenter Richard Ndlela to set up an interview at the Porsche Centre in Lonehill, he tells me that I will recognise him by his trademark "BEE look" of designer jeans and a jacket. When I arrive in Lonehill I am surprised to see him alight from the passenger side of a modest Toyota Corolla, which he tells me belongs to his partner. The vehicle Ndlela is here to drive is the new Cayenne GTS.

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/ 27 May 2008

Beyond the usual suspects

Empowerment works when it fosters new connections between established and emerging companies; develops skills at the lower and middle levels of the hierarchy; and creates space for new entrepreneurs to get a seat at the table. At its best, says a study by Matthew Andrews of Harvard’s Kennedy School of Government, BEE can yield spectacular dividends.

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/ 27 May 2008

The market usually comes out tops

How often does the market beat the asset manager? The consensus is that more often than not the market comes out tops. Sanlam Investment Management managing director Armien Tyer says in the United States few managers beat the index over the long term. According to one study, in the period between 1994 to 2004 about 80% of equity managers could not beat the S&P 500.

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/ 27 May 2008

The skills paradox

Black economic empowerment is supposed to ensure that the hoary cliché — "our greatest resource is our people" — comes to life. The intention is to open opportunities across the economy for black South Africans whose potential as economic actors has been constrained for years.

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/ 26 May 2008

Minister: Xenophobic violence under control

Xenophobic violence against foreign nationals has been brought under control, Safety and Security Minister Charles Nqakula said on Monday. ”I do believe the situation is under control … the violence has subsided,” he said at a briefing at the Union Buildings in Pretoria following an inter-governmental task team meeting with President Thabo Mbeki.

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/ 26 May 2008

No solution but war, says Somali Islamist leader

There is ”no solution but war” to solve Somalia’s problems, and Somali Islamists must re-arm and fight, a long-time hard-line Islamist leader linked to al-Qaeda said on Monday. In a rare interview, Sheikh Hassan Abdullah Hersi al-Turki urged the United Nations not to send soldiers to shore up an African Union peacekeeping force.