The Rise And Fall Of Top Investment Managers


Case study – the rise and fall of top investment managers

The Johannesburg Stock Exchange (JSE) data has shown that Steinhoff was the fifth most popular share for funds to invest in but with its latest corruption scandal by its CEO Markus Jooste. The global giant retailer has turned into a troubled retailer stealing money out of the pockets of the average hard working pension fund having South African.

South African civil servants whose pensions are invested through the Public Investment Corporation have lost billions. Such a business tragedy indeed to the tune of 200 billion and this was within a week of the launch of the investigation by PwC into the matter. Economists estimate Steinhoff International dropped a further R32.8bn, after it lost R120bn of its market value when investors dumped the retailer following Jooste resignation amid an accounting scandal.

Steinhoff International Holdings was founded in 1964 as a German furniture seller it then morphed into a South Africa-based retailer with global ambitions. Since billionaire Christo Wiese bought in to the company, Steinhoff has accelerated a deal-making spree, snapping up home-furnishing chains and other businesses across Europe, the U.S. and Australia.

On Wednesday December 6 the shares plunged after Jooste resigned amid accounting irregularities. “Bloomberg” reported

It’s not just the million-plus government employees who will be a little poorer. Ahead of the crisis, Steinhoff was one of the 15 largest companies on the JSE, and was widely held by funds managing ordinary South Africans’ pensions.

The scale of the Steinhoff scandal has thrown Jooste into the broader public spotlight outside of corporate boardrooms. Who is this man, until not so long ago regarded as a near-genius entrepreneur, whose reputation now lies in tatters. Steinhoff closed at R10 a share on Thursday afternoon, December 7 down from R50.34 on Monday afternoon, December 4.


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