We've put together a comprehensive guide to help you understand the fundamentals of hedge funds. Whether you're new to the concept or looking to deepen your knowledge, this video series covers the essentials—how hedge funds work, why they matter, and how we at Peregrine Capital use these strategies to drive performance.
Click below to watch the series and gain a clearer perspective on this powerful investment vehicle.
Unlock The World Of Hedge Funds
John
Smit
Bryan Habana
Peregrine Capital proudly partnered with the Rugby Centurions to launch two TV adverts on SuperSport. The first TV ad stars John Smit, bringing his leadership and experience to life, while the second ad features Bryan Habana, who shares his journey of pushing from 1 to 100—demonstrating the grit, determination, and excellence required to reach this incredible milestone (only shared by 8 Springboks).
This collaboration highlights our shared commitment to achieving greatness, both on the field and in the world of investment.
View both ads and be inspired by these remarkable sports icons.
Peregrine Capital Launches its First Two TV Adverts
Meet Our Newest Team Member
We are delighted to welcome Teaghan Price to the Investment Specialist team! Teaghan came on board in July and is based in Durban. We’re excited to see the impact his skills and experience will bring.
Teaghan Price
Investment Specialist
Scroll down
Welcome to the latest edition of Peregrine Capital’s newsletter, where we share our views and news about our business, our funds, and why hedge funds should form part of a growing and diversified investment portfolio. This edition includes our perspective on Q3 of 2025, following the semi-annual investor letter we published in July 2025.
We share regular updates and insights on our LinkedIn page, so please follow us to stay updated with what we’re working on as we continue to deliver on our purpose of creating wealth for our clients.
Discover the market dynamics impacting our funds’ performance during the third quarter of 2025, as discussed by Justin Cousins, portfolio manager at Peregrine Capital.
The Peregrine Capital High Growth Fund delivered a net return of 5.0% for the third quarter of 2025. This compares with the S.A. Multi Asset High Equity Index, which gained 5.9%. The Peregrine Capital Pure Hedge Fund delivered a net return of +3.3% for the third quarter of 2025. This compares with the S.A. Multi Asset Low Equity Index, which gained 4.7% in the quarter.
Outlook
While we acknowledge the risks, it is worth highlighting the following: First, CEOs continue to remind us that they are “capacity constrained” as demand continues to outstrip supply. Second, reported revenue growth rates have accelerated for most of the key beneficiaries of AI. And finally, while international valuations are higher than historic levels for the market as a whole, we continue to see attractive valuations for those companies we are most bullish about.
As a hedge fund, we continue to seek opportunities to utilise the numerous tools at our disposal to mitigate valuation risks while retaining the potential for upside. Our team remains laser-focused on both the opportunities and risks in front of us, and endeavors to continue compounding investor capital at the best possible rate, employing the same tried-and-tested methods we have used for the past 27 years.
Capital markets continue to climb a wall of worry, as evidenced by the rally in both equities and traditional “store of value” assets. Market commentators are increasingly highlighting high valuations as a risk, fuelled by extensive capital expenditures from market leaders seeking to capitalize on opportunities in artificial intelligence.
Portfolio Construction
At quarter-end, the Peregrine Capital High Growth Fund gross exposure had risen from 135% to 137%, while net exposure to equities and real estate remained broadly similar at 74%. While the aggregate net exposure has not changed materially, the underlying exposure to foreign equities and real estate opportunities has increased from 33% to 39%, a result of both the rally in international shares and the identification of new opportunities. Exposure to bonds fell further from 6% to 3% while cash holdings increased to 22%.
At quarter-end, the Peregrine Capital Pure Hedge Fund’s gross exposure remained at 138%, while its net exposure to equities and real estate fell slightly from 26% to 24%. While the aggregate net exposure has not changed materially, the underlying exposure to foreign equities and real estate opportunities has increased from 8% to 13%, which was a function of both the rally in international shares and new opportunities that were identified. Exposure to bonds fell further from 12% to 9% while cash holdings increased to 67%.
Attribution
Companies in the resources, technology, and semiconductor sectors drove the majority of the positive fund performance, while exposure to retail, insurance, and payments sectors detracted from performance in the quarter.
Macro
On the international front, the impact of U.S. tariffs has been less severe than many pundits had forecast, inflation appears to be in check in most jurisdictions, and “risk on” sentiment has persisted. Market participants remain concerned about the health of government balance sheets, and with the primacy of the U.S. dollar increasingly coming into question in a multipolar world, the gold price advanced by 16.8%, owing mainly to its “store of value” perception. Equity markets continue to be fuelled by the expectation of higher growth rates driven by the artificial intelligence boom, where market leaders continue to invest significant amounts of capital to accelerate the development of this technology. The S&P 500 rallied by 8.1% this quarter, while markets in Europe and Hong Kong delivered returns of 4.5% and 12.1%, respectively, all in local currency.
The domestic equity market delivered strong returns during the quarter, with the JSE Capped SWIX advancing by 12.8%. This was driven by an exceptional 50% rally by companies in the resource sector, generally, and precious metals and platinum group metals in particular. Excluding the resource sector, the balance of domestic S.A. was approximately flat for the quarter as asset managers increasingly sold these shares to close underweight positions in the resources space. Local bonds advanced, likely owing to sustained rhetoric from the SARB on their ambition to adopt a lower inflation target range. At a macro level, structural reforms continue to move ahead slowly, and the outlook for meaningful domestic growth appears muted in the short term.
Equity markets continue to be fuelled by the expectation of higher growth rates driven by the artificial intelligence boom.
QI HEDGE FUND
Click above to view the longest-running hedge fund in South Africa, designed to offer investment stability and downside protection while growing investors’ purchasing power. The fund aims to deliver inflation-beating returns over the medium term and has achieved 100X growth without a single negative year since its inception in July 1998.**
**Please refer to disclaimers at the end of the newsletter.
QI HEDGE FUND
Click above to view why you should continue to invest in Peregrine Capital’s High Growth Fund - the first hedge fund in South Africa to achieve 100X* an investor’s initial investment, so R1 million invested in the fund in February 2000 is worth more than R100 million now.
*Please refer to disclaimers at the end of the newsletter.
Want to learn more about our flagship funds?
View our Flagship Fund’s Third Quarter 2025 Performance Below:
H4 QI HEDGE FUND
Click above to view the longest-running hedge fund in South Africa, designed to offer investment stability and downside protection while growing investors’ purchasing power. The fund aims to deliver returns above inflation over the medium term and has never had a negative year since its inception in July 1998.**
**Please refer to disclaimers at the end of the newsletter.
H4 QI HEDGE FUND
Click above to view why you should continue to invest in Peregrine Capital’s High Growth Fund - the first hedge fund in South Africa to achieve 100X* an investor’s initial investment, so R1 million invested in the fund in February 2000 is worth more than R100 million now.
*Please refer to disclaimers at the end of the newsletter.
Want to learn more about our flagship funds?
View our Flagship Fund’s Third Quarter 2025 Performance Below:
The Advisor Behind the Curtain
The Power of Collective Intelligence
Peregrine Capital’s Grant Dixon challenges the notion that hedge funds are mysterious or solely focused on chasing alpha. Instead, he argues that the real value lies in managing behavioural risk—helping investors avoid emotional decision-making that harms long-term returns. Hedge funds, with their focus on downside protection and consistency, act as tools for advisors to guide clients through uncertain markets with confidence. It’s not about complexity—it’s about clarity, discipline, and helping investors reach their goals.
In a recent article in MoneyWeb, Kavita Patel, one of our investment specialists, highlights Peregrine Capital’s unique strength: collective intelligence. Unlike firms that rely on individual managers, we operate with a flat structure where rigorous debate and collaboration drive our investment decisions. This approach has delivered consistent, superior returns over 26 years. With over 180 times return on capital for our High Growth Fund and no negative years for the Pure Hedge Fund, our process-driven, team-first culture remains the key to long-term success.
100x the Power of Partnerships
Protecting Downside – Capturing Upside
In an interview with Michael Avery on Classic Business Radio, CEO Jacques Conradie discussed how our recently launched unique partnership with the Springbok Rugby Centurions, celebrates excellence in both rugby and fund management. The partnership highlights the dedication, resilience, and performance needed to succeed in both fields, drawing parallels between Peregrine’s track record of delivering over 100x returns for investors and the achievement of 100 Test caps in rugby. The collaboration not only honours the legendary players but also supports initiatives like the Chris Jackson Burger Petro Players Fund, which assists injured rugby players, reinforcing the importance of legacy, passion, and discipline in both sport and business.
In an insightful reflection with Hedge News Africa, Jacques Conradie, shares the team's quick response to US President Trump's tariff announcements on April 3, 2025 which led to market volatility. By purchasing short-term put options, the team successfully protected our portfolios during a mini market crash, limiting the drawdown to just 1.3%. As markets rebounded, we strategically redeployed capital, capturing the upside. Peregrine's approach highlights our focus on downside protection while positioning for long-term growth, with strong returns for the first half of the year.
For more on our strategy, read the full article below
Peregrine Capital
in The News
Reframing the Future: Why Hedge Funds Belong in Every Smart Investor’s Portfolio
Marnus Briedenhann, one of our Investment Specialists, explains in this Money Marketing article, how hedge funds in South Africa are evolving beyond outdated myths and misconceptions, highlighting their increasing importance in modern portfolios. Despite criticism over high fees, hedge funds offer exceptional value through consistent, risk-adjusted returns and capital preservation, especially in volatile markets. Their ability to diversify strategies and manage risk dynamically makes them a vital component of well-rounded investment portfolios.
For more on why hedge funds are crucial for future-fit portfolios, read the full article below.
Peregrine Insider Johannesburg (August) and Cape Town (September)
Jacques Conradie, David Fraser, and Justin Cousins, our Portfolio Managers conversed with Alan Yates (Head of Distribution) with just under 150 financial advisors in both the mother city and our Sandton office. The Portfolio Managers shared key insights and market sentiment on both local and global companies, as well as our fund strategies.
Investment Think Tank
The Investment Think Tank events took place in Mbombela, Potchefstroom, Bloemfontein, Durban, and Port Elizabeth this August. Various team members from Peregrine Capital represented us across the country and spoke at a presentation titled “Using Hedge Funds to Navigate Rough Waters”.
Industry Events We Participated
in That You May Have Missed
Curious about what it's like to invest with Peregrine Capital? Hear directly from the people who know best—our advisors. Watch as three different advisors share their experiences, providing insight into what it’s like to invest in our funds. They also offer valuable perspectives on what their clients say about us. Get a behind-the-scenes look at the trust, strategy, and performance that help to set us apart.
Discover What it’s Really Like to Invest With Peregrine Capital
Hanjo Schlabitz
Charl Roos
Wealth Management Solutions
Private Wealth Management
Upcoming Event Where You Can Meet the Peregrine Capital Team
We look forward to continuing our partnership on your wealth journey and investing in performance in 2026. Secure your financial future by attending our Annual Investor Day event in Johannesburg. Details will be shared with you shortly.
Peregrine Investor Day – February 2026
**100X also refers to the Peregrine Capital Pure Hedge QI Hedge Fund. R1m invested in the Pure Hedge Fund at inception, is worth more than R100m today. Pure Hedge Fund annualised return: 18.68%. Categorised as a SA Multi Asset - Low Equity Category and quoted since inception (July 1998).
Contact Us
About Investing, Today.
Peregrine Capital Celebrates the 100x Mark in Partnership With the Rugby Centurions.
Reaching 100 is a defining milestone that resonates universally, whether in sport, life, or investment. It's a mark of dedication, excellence, and lasting impact, making it the perfect representation of success. Whether it’s achieving 100 international rugby test caps, living 100 years, or delivering 100-fold returns in investments, these milestones embody an unwavering commitment to performance – the perfect synergy for an exciting new partnership launched this August for Peregrine Capital and Rugby Centurions.
*Fund Name | Inception date | Highest annual return | Lowest annual return | Latest 1 year | Latest 5 years | Latest 15 years |
|---|---|---|---|---|---|---|
High Growth Fund | Feb-00 | 53.01% (2004) | -11.98% (2008) | 15.58% | 15.76% | 17.17% |
FTSE/JSE Capped Swix All Share Index | Feb-00 | 47.25% (2005) | -23.23% (2008) | 28.13% | 18.83% | 11.26% |
ASISA South Africa MA High Equity | Feb-00 | 27.49% (2004) | -8.24% (2008) | 15.02% | 12.92% | 9.33% |
Pure Hedge Fund | Jul-98 | 67.90% (1999 | 1.61% (2008) | 12.19% | 11.65% | 12.41% |
ASISA South Africa MA Low Equity | Jul-98 | 40.59% (1999 | -10.69% (2008) | 12.55% | 10.46% | 8.32% |
Disclaimers:
We've put together a comprehensive guide to help you understand the fundamentals of hedge funds. Whether you're new to the concept or looking to deepen your knowledge, this video series covers the essentials—how hedge funds work, why they matter, and how we at Peregrine Capital use these strategies to drive performance.
Click below to watch the series and gain a clearer perspective on this powerful investment vehicle.
Unlock The World Of Hedge Funds
Peregrine Capital proudly partnered with the Rugby Centurions to launch two TV adverts on SuperSport. The first TV ad stars John Smit, bringing his leadership and experience to life, while the second ad features Bryan Habana, who shares his journey of pushing from 1 to 100—demonstrating the grit, determination, and excellence required to reach this incredible milestone (only shared by 8 Springboks).
This collaboration highlights our shared commitment to achieving greatness, both on the field and in the world of investment.
View both ads and be inspired by these remarkable sports icons.
Peregrine Capital Launches its First Two TV Adverts
John Smit
Bryan Habana
We are delighted to welcome Teaghan Price to the Investment Specialist team! Teaghan came on board in July and is based in Durban. We’re excited to see the impact his skills and experience will bring.
Teaghan Price
Investment Specialist
Meet Our Newest Team Member
Upcoming Event Where You Can Meet the Peregrine Capital Team
We look forward to continuing our partnership on your wealth journey and investing in performance in 2026. Secure your financial future by attending our Annual Investor Day event in Johannesburg. Details will be shared with you shortly.
Peregrine Investor Day – February 2026
Peregrine Capital Celebrates the 100x Mark in Partnership With the Rugby Centurions.
Reaching 100 is a defining milestone that resonates universally, whether in sport, life, or investment. It's a mark of dedication, excellence, and lasting impact, making it the perfect representation of success. Whether it’s achieving 100 international rugby test caps, living 100 years, or delivering 100-fold returns in investments, these milestones embody an unwavering commitment to performance – the perfect synergy for an exciting new partnership launched this August for Peregrine Capital and Rugby Centurions.
Welcome to the latest edition of Peregrine Capital’s newsletter, where we share our views and news about our business, our funds, and why hedge funds should form part of a growing and diversified investment portfolio. This edition includes our perspective on Q3 of 2025, following the semi-annual investor letter we published in July 2025.
We share regular updates and insights on our LinkedIn page, so please follow us to stay updated with what we’re working on as we continue to deliver on our purpose of creating wealth for our clients.
Macro
The domestic equity market delivered strong returns during the quarter, with the JSE Capped SWIX advancing by 12.8%. This was driven by an exceptional 50% rally by companies in the resource sector, generally, and precious metals and platinum group metals in particular. Excluding the resource sector, the balance of domestic S.A. was approximately flat for the quarter as asset managers increasingly sold these shares to close underweight positions in the resources space. Local bonds advanced, likely owing to sustained rhetoric from the SARB on their ambition to adopt a lower inflation target range. At a macro level, structural reforms continue to move ahead slowly, and the outlook for meaningful domestic growth appears muted in the short term.
Locally, market participants are concerned about the potential outcomes of the upcoming national government elections. Equity market volumes have been extremely low, with bias tilted toward the sale of equities and bonds. Valuations of listed equities and bonds are severely depressed despite improvements in energy output and transport seen in recent months. The ANC faces the prospect of losing outright control of the country for the first time in 30 years, and prospective coalition partners offer both high and low road outcomes for South Africa.
Outlook
Capital markets continue to climb a wall of worry, as evidenced by the rally in both equities and traditional “store of value” assets. Market commentators are increasingly highlighting high valuations as a risk, fuelled by extensive capital expenditures from market leaders seeking to capitalize on opportunities in artificial intelligence.
Discover the market dynamics impacting our funds’ performance during the third quarter of 2025, as discussed by Justin Cousins, portfolio manager at Peregrine Capital.
Equity markets continue to be fuelled by the expectation of higher growth rates driven by the artificial intelligence boom.
Portfolio Construction
At quarter-end, the Peregrine Capital High Growth Fund gross exposure had risen from 135% to 137%, while net exposure to equities and real estate remained broadly similar at 74%. While the aggregate net exposure has not changed materially, the underlying exposure to foreign equities and real estate opportunities has increased from 33% to 39%, a result of both the rally in international shares and the identification of new opportunities. Exposure to bonds fell further from 6% to 3% while cash holdings increased to 22%.
At quarter-end, the Peregrine Capital Pure Hedge Fund’s gross exposure remained at 138%, while its net exposure to equities and real estate fell slightly from 26% to 24%. While the aggregate net exposure has not changed materially, the underlying exposure to foreign equities and real estate opportunities has increased from 8% to 13%, which was a function of both the rally in international shares and new opportunities that were identified. Exposure to bonds fell further from 12% to 9% while cash holdings increased to 67%.
Shares in the technology, property, and luxury goods sectors contributed positively to fund performance, while exposure to banks, e-commerce, and retail companies detracted from fund performance this quarter. While our international exposure contributed positively to fund performance, domestic South African equities were particularly weak.
Attribution
The Peregrine Capital High Growth Fund delivered a net return of 5.0% for the third quarter of 2025. This compares with the S.A. Multi Asset High Equity Index, which gained 5.9%. The Peregrine Capital Pure Hedge Fund delivered a net return of +3.3% for the third quarter of 2025. This compares with the S.A. Multi Asset Low Equity Index, which gained 4.7% in the quarter.
View our Flagship Fund’s Third Quarter 2025 Performance Below:
QI HEDGE FUND
Click above to view the longest-running hedge fund in South Africa, designed to offer investment stability and downside protection while growing investors’ purchasing power. The fund aims to deliver returns above inflation over the medium term and has never had a negative year since its inception in July 1998.**
**Please refer to disclaimers at the end of the newsletter.
QI HEDGE FUND
Click above to view why you should continue to invest in Peregrine Capital’s High Growth Fund - the first hedge fund in South Africa to achieve 100X* an investor’s initial investment, so R1 million invested in the fund in February 2000 is worth more than R100 million now.
*Please refer to disclaimers at the end of the newsletter.
Private Wealth Management
Charl Roos
Wealth Management Solutions
Hanjo Schlabitz
Discover What it’s Really Like to Invest With Peregrine Capital
Curious about what it's like to invest with Peregrine Capital? Hear directly from the people who know best—our advisors. Watch as three different advisors share their experiences, providing insight into what it’s like to invest in our funds. They also offer valuable perspectives on what their clients say about us. Get a behind-the-scenes look at the trust, strategy, and performance that help to set us apart.
Protecting Downside – Capturing Upside
The Power of Collective Intelligence
In an insightful reflection with Hedge News Africa, Jacques Conradie, shares the team's quick response to US President Trump's tariff announcements on April 3, 2018, which led to market volatility. By purchasing short-term put options, the team successfully protected our portfolios during a mini market crash, limiting the drawdown to just 1.3%. As markets rebounded, we strategically redeployed capital, capturing the upside. Peregrine's approach highlights our focus on downside protection while positioning for long-term growth, with strong returns for the first half of the year.
For more on our strategy, read the full article below
In a recent article in MoneyWeb, Kavita Patel, one of our investment specialists, highlights Peregrine Capital’s unique strength: collective intelligence. Unlike firms that rely on individual managers, we operate with a flat structure where rigorous debate and collaboration drive our investment decisions. This approach has delivered consistent, superior returns over 26 years. With over 180 times return on capital for our High Growth Fund and no negative years for the Pure Hedge Fund, our process-driven, team-first culture remains the key to long-term success.
Peregrine Capital
in The News
Reframing the Future: Why Hedge Funds Belong in Every Smart Investor’s Portfolio
Reframing the Future: Why Hedge Funds Belong in Every Smart Investor’s Portfolio
Peregrine Capital’s Grant Dixon challenges the notion that hedge funds are mysterious or solely focused on chasing alpha. Instead, he argues that the real value lies in managing behavioural risk—helping investors avoid emotional decision-making that harms long-term returns. Hedge funds, with their focus on downside protection and consistency, act as tools for advisors to guide clients through uncertain markets with confidence. It’s not about complexity—it’s about clarity, discipline, and helping investors reach their goals.
In a recent article in MoneyWeb, Kavita Patel, one of our investment specialists, highlights Peregrine Capital’s unique strength: collective intelligence. Unlike firms that rely on individual managers, we operate with a flat structure where rigorous debate and collaboration drive our investment decisions. This approach has delivered consistent, superior returns over 26 years. With over 180 times return on capital for our High Growth Fund and no negative years for the Pure Hedge Fund, our process-driven, team-first culture remains the key to long-term success.
100x the Power of Partnerships
In an insightful reflection with Hedge News Africa, Jacques Conradie, shares the team's quick response to US President Trump's tariff announcements on April 3, 2018, which led to market volatility. By purchasing short-term put options, the team successfully protected our portfolios during a mini market crash, limiting the drawdown to just 1.3%. As markets rebounded, we strategically redeployed capital, capturing the upside. Peregrine's approach highlights our focus on downside protection while positioning for long-term growth, with strong returns for the first half of the year.
For more on our strategy, read the full article below
Contact Us
About Investing, Today.
**100X also refers to the Peregrine Capital Pure Hedge QI Hedge Fund. R1m invested in the Pure Hedge Fund at inception, is worth more than R100m today. Pure Hedge Fund annualised return: 18.68%. Categorised as a SA Multi Asset - Low Equity Category and quoted since inception (July 1998).
Peregrine Insider Johannesburg (August) and Cape Town (September)
Jacques Conradie, David Fraser, and Justin Cousins, our Portfolio Managers conversed with Alan Yates (Head of Distribution) with just under 150 financial advisors in both the mother city and our Sandton office. The Portfolio Managers shared key insights and market sentiment on both local and global companies, as well as our fund strategies.
Industry Events We Participated
in That You May Have Missed
Investment Think Tank
The Investment Think Tank events took place in Mbombela, Potchefstroom, Bloemfontein, Durban, and Port Elizabeth this August. Various team members from Peregrine Capital represented us across the country and spoke at a presentation titled “Using Hedge Funds to Navigate Rough Waters”.
*Fund Name | Inception date | Highest annual return | Lowest annual return | Latest 1 year | Latest 5 years | Latest 15 years |
|---|---|---|---|---|---|---|
High Growth Fund | Feb-00 | 53.01% (2004) | -11.98% (2008) | 15.58% | 15.76% | 17.17% |
FTSE/JSE Capped Swix All Share Index | Feb-00 | 47.25% (2005) | -23.23% (2008) | 28.13% | 18.83% | 11.26% |
ASISA South Africa MA High Equity | Feb-00 | 27.49% (2004) | -8.24% (2008) | 15.02% | 12.92% | 9.33% |
Pure Hedge Fund | Jul-98 | 67.90% (1999 | 1.61% (2008) | 12.19% | 11.65% | 12.41% |
ASISA South Africa MA Low Equity | Jul-98 | 40.59% (1999 | -10.69% (2008) | 12.55% | 10.46% | 8.32% |
Disclaimers: