Business Report – Fifteen months before African Bank Investments Ltd’s rescue this week, David Stemerman told his fellow US hedge fund managers to bet against the South African lender.
Stemerman, founder of $3 billion (R32 billion) Conatus Capital Management LP, told a New York hedge-fund conference that African Bank had become vulnerable after aggressively building up its unsecured consumer lending investments and becoming too reliant on financing from the bond market.
