South Africa’s Doctor Doom: How Magnus Heystek Made Millions for His Clients

Magnus Heystek, the co-founder and director of Brenthurst Wealth Management, has long been known for his pessimistic outlook on South African investments. Critics call him “Doctor Doom”, but his unwavering stance on offshore investing has proven to be highly profitable for his clients.

With R17 billion in assets under management, Brenthurst Wealth has become one of South Africa’s top boutique wealth managers, consistently ranking among the best in the Intellidex Private Bank and Wealth Manager Awards.

From Local Optimism to Offshore Success

When Heystek co-founded Brenthurst in 2004, South Africa’s economy was booming. He advised clients to invest locally, taking advantage of the strong rand, property market surge, and high-performing stocks.

One standout investment was John Biccard’s Value Fund, which delivered over 40% annual returns for multiple years. However, the 2008 global financial crisis and Jacob Zuma’s presidency marked a turning point.

“We started to follow local politics closely and saw the early signs of state capture, political greed, and institutional collapse,” Heystek explained.

By 2011-2012, commodity prices dropped, and South Africa’s economic stability weakened. This prompted Heystek to shift his focus offshore, securing partnerships with global fund managers like Franklin Templeton, Fidelity, and Vanguard.

The Rise of Offshore Investments

Brenthurst Wealth established two offshore funds:

• Brenthurst Global Balanced Fund
• Brenthurst Global Equity Fund

These funds allowed Brenthurst clients to capitalize on the tech-driven bull market in the U.S., significantly outperforming the JSE.

“It turned out to be a great decision. We are pleased to see more asset managers advising clients to move money offshore,” said Heystek.

Why Heystek Embraces the “Doctor Doom” Label

For years, South African fund managers criticized Heystek’s negative stance on local investments. However, global markets told a different story:
South Africa’s stock market underperformed compared to major indices like the S&P 500 and Nasdaq 100.
Offshore investments delivered higher returns, proving Heystek’s strategy correct.

At the 2025 Biznews Conference, Heystek addressed these criticisms head-on:

“The media has been manipulated, big corporations are too scared to speak out, and bank economists get fired for telling the truth,” he stated.

South Africa’s Investment Challenges

Heystek believes South Africa’s economic struggles stem from poor governance and policy failures.

Key concerns include:

• GDP stagnation – South Africa’s GDP per capita remains at 2007 levels.
• Business climate – The country ranks among the most difficult places to do business.
• Stock market outflows – Foreign investors continue to withdraw from the JSE.

“Year after year, there have been net outflows from South Africa’s equity markets. That is what the world says about our economy.”

Where to Invest Now?

Despite his bearish outlook on South African stocks, Heystek highlights one local opportunity – the South African bond market.

“Our bond market offers phenomenal returns, making it a much better investment than local stocks.”

Final Thoughts

Magnus Heystek’s investment philosophy has been controversial, but his track record speaks for itself. By prioritizing offshore investments, he has helped Brenthurst clients achieve superior returns while shielding their wealth from South Africa’s economic instability.

While local stocks remain under pressure, Heystek continues to advocate for externalizing wealth, ensuring South African investors capitalize on global opportunities.

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