Does the fund manager invest his own capital in the fund?

As a tax resident of Tanzania, it is most tax effective for Tim (0% capital gains tax, and 5% dividend withholding tax), to invest in the stocks the Fund owns DIRECTLY, versus doing it through the fund (30% tax on all gains or dividend income, if paid out).

Tim does both. Approximately 50% of his total net worth and 95% of his liquid net worth are invested either in the Fund or in the exact same companies the fund owns in Tanzania. Naturally the Fund gets priority over Tim’s personal investment on any buy and sell decisions in those companies.