South Africa’s richest man Johann Rupert loses $1.3 billion as Richemont shares slide

South Africa’s richest man, Johann Rupert, has lost $1.3 billion from his fortune in the past 11 days, giving back a large part of the gains he made in recent months as shares in luxury-goods group Richemont fell.

Rupert’s net worth stood at $20.2 billion at the time of writing, down from $21.5 billion on Aug. 10, according to the Bloomberg Billionaires Index. 

The decline follows a $1.5 billion increase in his fortune between July and early August, leaving him with a year-to-date gain of $762 million, compared with more than $2 billion on Aug. 10.

Much of the recent change in Rupert’s fortune is tied to his stake in Richemont, the Swiss luxury-goods company behind Cartier, Montblanc and Van Cleef & Arpels.

Rupert owns 6.263 million of the company’s “A” shares and 522 million “B” shares, giving him a 10.18 percent economic interest and about 51 percent of the voting rights.

Richemont shares slide after strong rally

Richemont’s shares have fallen 7.87 percent over the past 11 days as investors took profits following a strong run in the stock. The shares had climbed to CHF200.80 ($251) on Aug. 10, helping push Richemont’s market value to about $125 billion.

The pullback has weighed on Rupert’s fortune because Richemont is one of the largest publicly traded assets tied to his wealth. The company has remained a key holding for the billionaire even as its shares have moved sharply in both directions this year.

Richemont reported net profit of €3.48 billion for the year ended March 31, supported by continued demand for jewelry. Currency movements and weaker watch sales weighed on some parts of the business, although revenue increased to €22.4 billion.

The company ended the period with net cash of €8.5 billion. The board proposed an ordinary dividend of CHF3.30 per share, a 10 percent increase from the previous year, along with a special dividend of CHF1 per share.

Rupert’s Stakes in Remgro, Reinet

Rupert’s wealth is not tied to Richemont alone. He is also a major shareholder in Remgro, the investment group with interests in more than 30 companies. He beneficially owns about 1 percent of Remgro and retains control of its Class B shares through the Rembrandt Trust.

His family also has a substantial holding in Reinet Investments, where it owns nearly 25 percent through the Anton Rupert Trust. Together, those investments account for a large share of Rupert’s wealth and help keep him among Africa’s richest people.

The latest decline shows how quickly changes in the value of a single major listed holding can affect the fortunes of the continent’s wealthiest investors.