We charter our own course

The Lodestar is the Star that sailors used to guide the course of their ships; the Lodestar Replaces Luck.

Sailors made use of co-ordinates in the night sky to help them navigate unchartered waters, and while there are a number of stars in the universe, the Lodestar is the Star that sailors used to guide the course of their ships; the Lodestar Replaces Luck. It acts as an unwavering source of direction and inspiration, having taken navigators from point A to point B, across many months and weather-induced circumstances, protecting them from any challenges that may have come their way. In fact, in Middle English around the 14th Century, the root word Lode meant “course” and is why today the term Lodestar Fund Managers sets the course of our clients’ investments in a way that is safe, stable and secure. A Lodestar also means to act as a goal or inspiration, as in an organisation can act as a lodestar to others in their industry.

What we do

Lodestar takes a different, more stable approach to fund and investment management. We are the reliable, resilient part of your portfolio. We follow a systematic, rules-based portfolio construction approach to investing that is based on concepts that have been consistently proven over time. 

Having started our business in 2015, we have seen our clients enjoy growth that offered some protection against market’s ebbs and flows as well as the worst shocks, thanks to our scientific techniques that construct the portfolio based on real world needs.

At our core, we are a people-centric business that works with you to provide a portfolio that performs in line with your expectations; we Replace Luck and avoid surprises by removing subjectivity from our approach and use our statistical methods to enhance consistent risk premiums in a reliable manner. We are also able to build tailor-made solutions to your specific needs, for instance to be exclusively ethical investing, ESG fund or Sharia funds.

We currently have over R2-billion of assets under management across two strategies, Global Equities (launched in 2017) and SA Equities (launched in 2021) for our growing portfolio of clients. Because we are technology-led we can easily scale up local and global offerings without having to gear operationally. This keeps costs low and delivers exceptional value without any performance drag.

As a 100% black-owned management team, we have 50 years’ of combined experience, allowing us to bring sought-after expertise and top drawer talent to the local and global asset management table.

Why we
do what we do

Lodestar sets its own course in a  cluttered investment universe; instead of following we take a fresh approach to investing by using a combination of rules-based and tech-integrated systems. 

Most investment fund managers follow a different strategy to Lodestar: their security selection approach tries to beat the market by identifying shares that they expect to outperform without an explicit portfolio construction methodology as part of the process. At Lodestar we believe that the marginal benefits of stock selection is low and that not enough attention is paid to how a portfolio will perform as a whole. Our approach is to provide broad market exposure because this has been the most reliable source of long-term returns. A robust rules-based process that harnesses the power of diversification is used to construct a portfolio with lower volatility and better outcomes in extreme market conditions. Since 2015 Lodestar has consistently delivered on our sophisticated clients’ needs by harnessing the power of diversification, following a rules-based, smart beta, tech-integrated portfolio construction investment process which reduces volatility.