Introduction
SHUAA Capital has a differentiated and unique public markets platform that invests in publicly listed securities through fund structures, with a focus on Middle East markets.
Goldilocks Investment Company Ltd
Goldilocks is an open-ended fund launched in 2015 and managed by SHUAA GMC Limited. Goldilocks predominantly invests in GCC investments with a long-term goal to compound capital at a high rate of return whilst minimising the risk of loss of capital by investing in investment opportunities at a discount to intrinsic value.
Since its inception, the fund has managed to significantly outperform regional and global indices, with a 220% net return compared to a 20% total return for the MSCI UAE, 49% total return for the S&P Pan Arab, and 67% total return for the MSCI World indices. Goldilocks operates with the support of other shareholders to ensure Boards and management of companies work towards executing turnaround strategies and unlocking shareholder value. In 2022, Goldilocks Class A shares were acquired by Eshraq Investments PJSC.
Fund Approach
The Fund operates with the support of other shareholders to ensure Boards and management of companies work towards executing turnaround strategies and unlocking shareholder value.
Investment Approach
Fundamental Analysis
- Seek out and analyse companies exhibiting significant valuation discrepancies between current market prices and intrinsic value
- Identify catalysts for value recognition such as shift in strategy, missteps by management, non- optimal capital structures and operational inefficiencies
Identifying the Goldilocks “Candidate”
- Candidate companies typically have fragmented shareholding, allowing them to work closely with the Board and management without necessarily requiring majority ownership of the underlying company
- Goldilocks companies usually require substantial turnaround and support from external parties to unlock value
Constructive Activism
- Acquiring a publicly disclosed stake with clearly communicated “change” objectives
- Advising management and Board through engagement on company strategy and turnarounds, including change in strategic direction, restructuring recapitalisation or pushing for a sale
- Engage in proxy contests for Board control and take a more direct role if there is resistance
Create Value for All Shareholders
- Implement turnaround strategies and communicate value creation plan with the market and shareholders
- Allow for controlled exit or sale to strategic investors following the implementation of a turnaround plan
ICC Fund Platform
SHUAA has established the Incorporated Cell Company (“ICC”) fund structure in ADGM to launch differentiated fund strategies under the ICC platform. SHUAA has launched six funds* under the ICC fund structure:
SHUAA Global Sukuk Fund (“SGSF”), SHUAA Global Equity Fund (“SGEF”), SHUAA North America Equity Fund (“SNAEF”), SHUAA Saudi Equity Fund (“SSEF”), Nujoom Balanced Fund (“NBF”), and Nujoom Aggressive Fund (“NAF”) (the “Funds”).
The Funds offer Investors the opportunity to diversify their holdings into well-managed balanced funds with allocation across global Sharia-compliant equities and fixed income.
Fundamental bottom-up analysis towards stock picking and selection of sukuk investments with a focus on maintaining a high-quality investment portfolio with a long-term horizon.
* Managed by SHUAA GMC Limited, SHUAA’s wholly owned FSRA regulated Investment Manager. SHUAA GMC Limited is established in Abu Dhabi Global Market “ADGM” and is licensed as a Prudential Category 2 Authorized Firm by the ADGM Financial Services Regulatory Authority (FSRA). SHUAA GMC Limited has obtained a Financial Services Permission to conduct regulated activities, including Managing Assets and Collective Investments Funds
Fund Approach
Return Focus
ICC Funds invest in high growth, high quality and significantly undervalued businesses.
High Growth
20-50%
High Quality
20-50%
Significant Value
20-50%
