Lowering the entry for investors to access the 100-plus stocks listed on Saudi Arabia’s Nomu parallel equities market, the Alpha Capital Freestyle Nomu Fund set a minimum initial subscription of SAR10,000 (US$2,667) at its 14th November 2024 launch.
By the end of Q4 2024, this Shariah compliant open-ended high-risk fund’s net asset value stood at SAR49.09 million (US$13.09 million) and had grown to SAR71.76 million (US$19.14 million) as at the 19th February 2025.
“We are witnessing unprecedented growth in the Saudi economy which has already been reflected on our market and it is expected to drive such growth further,” Njood Almehbash, the vice-president of portfolio management at Alpha Capital, shared with IFN Investor.
There were 29 Nomu listings in 2023 and 27 last year for this parallel market, where usual access is restricted to institutional players and qualified investors having over SAR5 million (US$1.33 million) worth of assets.
Fund manager Alpha Capital is anticipating this fund’s valuation to surpass SAR100 million (US$26.67 million) toward the end of 2025 as it focuses on IPOs, priority rights and real estate funds of Nomu listings. Such Nomu stocks will be held for up to two years after being transferred to the main Tadawul market.
Adopting an active weekly quantitative screening, the fund portfolio typically has 15-24 holdings, where the investment strategy is benchmark agnostic, explained Njood.
“We see significant opportunities in early investments in sectors … such as insurance, healthcare and information technology.”
Beyond equities Alpha Capital may invest up to 50% in Murabahah funds and money market funds as doing so “helps in managing liquidity by ensuring sufficient cash for IPO subscriptions, redemptions, portfolio rebalancing and operational needs without affecting investments performance”.
All profits are automatically reinvested as the fund aims to achieve long-term capital growth. While the fund’s overall investment strategy is “benchmark agnostic”, its performance is still nominally tracked against the Nomu Parallel Market Capped Index.
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| Alpha Capital Freestyle Nomu Fund | |
| Fund manager | Alpha Capital |
| Launch date | 14th November, 2024 |
| Asset class | Open-ended public equity fund |
| Base currency | SAR |
| Unit price | SAR10 (US$2.66) |
| Initial investment | SAR10,000 (US$2,667), same for subsequent multiples |
| Investment objective | To achieve long-term capital growth by investing in public equities compatible with Shariah guidelines |
| Benchmark | Nomu Parallel Market Capped Index |
| Risk profile | High risk |
| Distribution | Profits reinvested, not distributed, to optimize capital gains |
Source: Alpha Capital
