Qatar Gate Fund

Objective

The Fund aims to achieve long term capital appreciation, through investments in publicly traded Qatar and GCC equity securities, with a focus on Qatari equities. The Fund’s investment strategy combines proprietary bottom-up fundamental analysis of individual stocks, top down portfolio construction and risk management. The Fund’s underlying investment style is long-term value investing

Fund Overview

Manager Amwal LLC
Founder Ahli Bank Q.S.C.
Investment Team

Talal Samhouri, CFA

Administrator and Custodian HSBC Bank Middle East Ltd
Auditors KPMG
Fund Type Open-Ended
Inception Date 16 September 2005
Subscription/Redemption Monthly
Management Fee 1.5% p.a.
Performance Fee 15% Over 10% Hurdle Rate
Custody and Administration Fee 0.30% p.a.

Qatar Gate Fund vs Index and Peers

Manager’s Commentary

The Saudi market continued to be the worst performing stock market in the region, and this month it was followed by the Qatari Market, both declining during the month by 7.5% and 5%, respectively. Declining oil prices, negative news flow from the Saudi construction sector and harsh austerity measures in Saudi Arabia had a negative impact on the path of GCC markets. But by end of the month a positive surprise occurred in Algeria about OPEC’s promise to cut production for the first time since 2008.

 

For Al Hayer Fund, we have continued increasing the cash allocation to about 13% as markets continued its decline. We have also reduced exposure to the Financials sector to about 39% from about 47%, since the sector, especially in Saudi Arabia, will be the hardest hit in the event of increased defaults in the system. While at the same time, we have diversified into consumer staples, chemicals and telecom, taking a defensive stance in anticipation of a dismal 3Q results.

 

Despite the heavy losses the Saudi market has exhibited this year, we believe that over the next few months it will recoup 2016 losses, as clarity increases on government measures and stability of oil prices in the range of $45-55 per barrel.

Performance

Qatar Gate Fund, Qatar’s 1st and longest running fund (10 years track record) which continues to be the leading product in the market with cumulative outperformance of 74% over the benchmark since 2010.
Amwal’s Qatar Gate Fund is the only Qatar equity fund to have outperformed the index every calendar year since inception (10 years).

Ranked #1
among MENA Equity Funds by 3-Year Performance

Ranked #3
among EM Equity Funds in 2011

Qatar Gate Fund Performance