Differential Capital

Headquartered in Bryanston, Johannesburg, and Newlands, Cape Town, Differential Capital was established in 2018 as an owner-managed boutique AI-led asset manager.

By
Blue Chip
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5

Initially focused on the Gradient Hedge Fund, it has since expanded into long-only equity, global equity and special situations strategies.

Ownership and clients

Differential Capital is privately owned, with 75% held by co-founders and staff, and 24.99% by Standard Bank Group. The business primarily caters for South African institutional investors (retirement funds, multi-managers and private clients), with retail access via structured AMC offerings. As of June 2025, Differential Capital manages R5-billion, with 98% sourced from institutional investors.

Meet the team

  • Vincent Anthonyrajah – CEO and Portfolio Manager (BSc Actuarial Science, FIA, CERA, 20+ years of experience).
  • Sam Houlie – Co-CIO (Fundamentals), CA(SA), CFA, ESG certification, 30+ years of experience.
  • Musa Malwandla – Co-CIO (AI/Data Science), PhD Finance, MSc Statistics, 13+ years of experience.
  • Jeremy Naguran – CTO, financial tech-nology specialist (20 years of experience) with an MBA.
  • Ayesha Hendricks – Head of Business Development, BCom Hons FAPM, MBA, 20 years of experience.

The investment team is divided into fundamentals (led by Sam Houlie) and AI/data science (led by Musa Malwandla) and works collaboratively to generate differentiated insights. With over 70% of the firm’s total team dedicated to investments, Differential Capital demonstrates a deep commitment to expertise and research-driven decision-making. The broader staff handle operations, ESG administration and client servicing.

Philosophy

Differential Capital employs an AI-led investment philosophy combining machine learning, data science and fundamental analysis. The firm believes market inefficiencies stem from differences in how investors access and interpret information. The strategy focuses on pricing inefficiencies, applying rigorous analysis to both long and short positions. Long positions seek mispriced quality and growth opportunities, while short positions target overvalued or struggling stocks. This approach is embedded across all strategies, including hedge funds, where short positions play a key role in alpha generation.

Investment strategies

Differential Capital’s AI-led investment strategies offer high-performance solutions that enhance portfolio resilience while providing valuable diversification benefits for financial planners and their clients. With market-leading returns, including the Gradient Hedge Fund’s 25.39% net return in 2024, Differential Capital presents an attractive alternative to traditional asset classes.

Clients benefit from rigorous reporting standards, independent valuation processes and full regulatory compliance, ensuring transparency and accountability in portfolio management. A specialised client service team ensures seamless interactions, timely updates and personalised solutions. By integrating AI-powered investment strategies, investors can enhance portfolio returns, effectively manage risk and leverage diversi-fication advantages to ensure resilient long-term outcomes.

Trust the process

Ideas originate from proprietary screening models, undergoing fundamental review by the investment committee. The firm follows a style-agnostic approach, leveraging AI and machine learning to uncover mispriced securities. Portfolio construction is disciplined, balancing position sizing, risk budgeting and strategic alignment. Institutional clients receive direct support from senior leadership, with tailored reporting, performance attribution and risk updates.

Product offering

  • Gradient Hedge Fund (QIHF): Multi-strategy hedge fund.
  • SA Equity Fund (Neural): High-conviction long-only strategy.
  • Special Situations Hedge Fund: Event-driven, activist investing.
  • Kyrios Global Equity Fund: AI-enhanced global owner-managed equity strategy.
  • AMC Access: Structured retail exposure via AMC 015 (Gradient Multi Strategy) and AMC 016 (Kyrios Global Equity).

Performance

The Gradient Hedge Fund delivered 25.39% net return for the 12 months to December 2024, earning the Best Multi-Strategy Hedge Fund Award from HedgeNews Africa. Suited for medium-term investors, this concentrated multi-strategy hedge fund was launched in 2019, aiming to generate superior risk-adjusted returns of 3-6% above cash (after fees). Differential Capital stands for excellence, resilience and innovation, with an adaptable investment philosophy that evolves with market conditions and technological advancements.

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