KARO - Desert Lion Capital Q3 2021 Investor Letter

• Desert Lion Capital is managed by Rudi van Niekerk who is a South African citizen. Due to a growing interest from US and other international investors, Desert Lion Capital was launched to meet the needs of non-South African investors.
• The Fund returned -9.9% net for Q3 2021. The major detractors to our performance during the quarter were Naspers and Sibanye Stillwater. Naspers, in tandem with its main asset Tencent, was down on concerns around China’s increased regulatory scrutiny of the technology sector.
• We enter the fourth quarter fully invested with 11 companies in our portfolio. As of quarter end, the top 5 positions constituted 76% of assets. We follow a long only approach and do not employ any leverage.
• Due to the concentrated nature of our portfolio, our returns are expected to be more volatile, yet, less risky, based on our rigorous adherence to margins of safety and zero leverage.

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