Sharenet explains changes in Blu Label shareholding
Sharenet CEO Giuseppe Lorusso has dismissed allegations that they promoted Blu Label Unlimited (BLU) and then sold a large stake held in the company through their Local Alpha Plus portfolio.
Sharenet and portfolio manager Dylan Bradfield have been strong supporters of Blu Label and have held the share since late 2022 from the R4.50 per share level.
Over the past year, the Blu Label Unlimited share price has experienced a remarkable surge, increasing by more than 80%.
This has helped the Local Alpha Plus portfolio to achieve an annualised return of 43.5%, well above the JSE SA All Share Index’s 25.7%.
Sharenet’s and Bradfield’s bullish stance on Blu Label Unlimited has drawn significant attention, especially after the strong share price growth substantiated their position.
A prominent financial sector and markets commentator, CJPraat, suggested that Sharenet did not practice what it preaches.
CJPraat claimed that the Sharenet Fund, which Bradfield manages, cut their stake in Blu Label Unlimited by 63% in the third quarter of 2025.
The account published copies of Sharenet’s June and September 2025 fact sheets to substantiate the claim.
These showed that the Local Alpha Plus portfolio’s Blue Label holding decreased from 17.5% to 6.4% over the three months.
“They replaced Blu Label with Telkom as the largest equity holding. Telkom is 12.6% of the fund,” said CJPraat. “Watch what they do, not what they say.”
Sharenet’s latest fact sheet for its Local Alpha Plus portfolio, dated November 2025, shows that neither BLU nor Telkom are in its top 5 holdings anymore.
Instead, the portfolio is majority cash (52.7%), followed by Balwin Properties (4.3%), Absa (4.1%), AECI (4.0%), and Pepkor (3.3%).
Sharenet explains the change
Sharenet CEO Giuseppe Lorusso dismissed the allegations by CJPraat, explaining that the reality is far removed from CJPraat’s speculation and allegations.
He said it would be impossible for a fund which held a small portion of Blu Label shares to move the market.
In contrast to CJPraat’s claims, Sharenet’s Local Alpha Plus Portfolio increased its absolute holdings in Blu Label between June 2025 and September 2025.
He said the Local Alpha Plus Portfolio increased its holdings in Blue Label from 205,000 shares on 30 June 2025 to 254,000 shares on 30 September 2025.
The suggestion that Sharenet’s Local Alpha Plus Portfolio sold or dumped shares during this period is inaccurate.
“Movements in Blu Label’s share price cannot properly be attributed to Sharenet’s portfolio decisions,” the company said.
CJPraat’s claim that Sharenet replaced its Blu Label Unlimited with Telkom is also inaccurate and does not reflect that fund’s shareholding.
This raises the question as to why the Local Alpha Plus Portfolio’s fact sheet shows a decline in percentage shareholding.
The reason is less sinister than what CJPraat suggested. Over this period, there were R19.78 million in client inflows, doubling its assets under management to R35.4 million.
The significant increase in the cash holding of the Local Alpha Plus Portfolio between June 2025 and September 2025 shows this inflow.
Lorusso stated that the baseless “pump and dump” claims against Sharenet overlook the facts, which are outlined in their portfolio documents.
Article amendment
MyBroadband amended the original article based on feedback from Sharenet CEO Giuseppe Lorusso, which contradicted CJPraat’s allegations.
The updated article contains additional information about the Local Alpha Plus Portfolio’s shareholding and capital flows.
This information dismissed concerns of any improper, unethical, or manipulative trading activity by Sharenet, its directors, portfolio managers, or clients.
It also shows that no independent evidence exists to support the social media allegations by CJPraat.
This includes suggestions that movements in Blu Label’s share price could be attributed to Sharenet’s portfolio decisions.
Sharenet further highlighted that no regulatory authority has made any adverse finding against it in this regard.
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