|Thanks Rambutan. The pfolio is unlisted US securities isn't it ?|
|doubts re manager's ability to avoid port blow-ups during US recession. Track record over recent years doesn't inspire confidence - nor does the outlook for the US economy.|
|Tempting dividend on this. And share price at big discount to NAV. What's the catch ?|
|I was looking at this IT because 10% of ZPG's portfolio is invested in the zeros.
Interesting they issued a NAV statment on 19th sept - the only one I can find ever ! I wonder what the reason was, especially as they only value the unlisted securities (and the great majority are unlisted) every 6 months, so the the valuation is really as 31st March 07. Makes no sense to me. Biggest move will be the drop in the USD v UKP I guess.
The repayment of the zeros has been hedged against currency risk. JZE is at a large dicount to estimated NAV, but there must be a lot of unceretainlt in the NAV.
Any views ??|
|I think one of the reasons for the discount is that it's a split cap. Even though it has never had any of the problems associated with the split cap scandals. Although geared, asset cover for the zeros is ample, something like 3x the last time I looked.|
|I've been into this one for a while. Ignoring the currency exposure the risk-reward looks very nice. You are getting approximately 95% debt with a 5% equity kicker. Most of the portfolio is in relatively safe old style industries.
Then there's the on-going share buyback and mention in a recent annual report of considering other capital structures. Regardless of which there is the scheduled wind-up in 2009.|
|Does anybody know if JZE have sold their 2 million shares in Safety yet? Can't find any mention of it in the report to september 30th but its not listed in the updated portfolio on Trustnet(although it is listed as a portfolio holding on aitc.co.uk.Today Safety went over $35 so a disposal soon would kick up the JZE NAV nicely.|
"To create a portfolio of investments in businesses primarily in the United States, providing a superior overall return comprised of a current yield and significant capital appreciation"
our own site:
our bosses stateside company:
and more stats etc
its been a poor decade so far for jze, but the long-term track record of the managers is good and over the last few months there have been signs of better things to come and a return to form for James Jordan and David Zalaznick. the big bear point is of course its 100% us$ exposure, unless of course your a dollar bull! in its present form jz is a split cap trust with zs gearing the ords.|
|100,000 @ 142p this morning looks an interesting trade. (Not mine!)|
|note that dam bought today. very timely.
i do hope that they can return to their form of ten years ago when they were the top performing investment trust for a number of years. that seems to be what they are hinting at in the prelim blurb. my two experiences with cbos held by investment trusts have been disastrous. i was hoping that perhaps the jz-cbo might have some life in it, but they didnt seem to hold much hope. a lot of money has gone down with it.|
|The 2003R & A mentioned this litigation in the Chairman's statement:
"In March 2003 the US Court of Appeal ruled in favour of Le Page's Industries Inc, a former portfolio company, ordering 3M Corporation to pay $68 million Tape-Monopoly award. The amount potentially due to JZEP is approximately $23 million ...3M has appealed."
Today's announcement includes:
"JZEP will receive approximately $25 million in ten business days from today's date as part of the overall judgement and accrued interest totalling approximately $87.5 million."
I remember reading the original 2003 bit, and promptly forgetting about it. I don't know how typical an investor I am, potential good news is forgotten, potential bad news keeps me awake at night. Perhaps everything in index-linked gilts is the thing for me.
Maybe, ram2, Prelude Trust should think about the phrase "allocated to income and capital"??|
|up by 8-10p. a nice bonus from the past...
JZEP's original investment in LePage's in 1993 was approximately $8.9 million
which was subsequently written off to zero in 1997. JZEP's share of the proceeds arising from the judgement will be allocated to income and capital, in amounts to be determined.
|What does this court win mean. Anyone got any predictions on where this is heading tomorrow|
|Prelims today look very sound, nav 164.3p giving a 22% disc, and good prospects for a large part of the investee companies. They also seem to be pretty open about their problem investments. I would think increased use of mezzanine investments would enable the dividend to increase, whilst proposals for share buybacks will support the nav. Apart from worries about the US markets and economy, which must be heeded, this looks "buy" territory to me. The time horizon is 2009, when the zeros will be redeemed, and the company reorganised in some way.|
|for reference purposes...
Jordan Co. Closes Inaugural Fund
Oct 21, 2002
The Jordan Co. earlier this month held a first and final close on its inaugural private equity fund. The New York-based firm has been participating in middle-market buyout deals for over two decades, but the majority of those commitments have been made through a closed-end investment trust listed on the London Stock Exchange. This latest effort, named The Resolute Fund, was launched in March with a $1 billion target and received approximately $3 billion of investor interest before being capped at $1.5 billion.
The two most senior members of The Jordan Co. are co-founders John "Jay" Jordan and David Zalaznick, a pair of investors who met up in 1980 to bootstrap buyout deals for Karl Marx & Co. After approximately 20 transactions, the pair launched their own firm and continued soliciting I-banks on a deal-by-deal basis until creating the closed-end investment trust, named JZ Equity Partners, in 1987. While that vehicle didn't reflect the more standard GP/LP structure, it offered significant tax benefits and kept Jordan in the mix when it came to LBO opportunities in the industrial and manufacturing sectors.
Between 1997 and 2001, The Jordan Co. invested approximately $600 million, but had to slough off approximately $125 million more on other equity sponsors because of capital constraints. Such frustrations helped lead the firm toward the realization that it needed to up its own ante, at which point it hired Atlantic-Pacific Capital Inc. as its placement agent.
"This is technically their first fund, but Jay and David have been doing this for a long time, and six of the partners have been there since 1990," said Atlantic-Pacific's Peter Zidlicky. "Maybe firms like KKR have more people who have been there longer, but these guys are very good from a track record perspective with realized numbers at more than a five times multiple."
Zidlicky added that the new fund is expected to invest in between 15 and 18 portfolio companies, some of which will be strict value plays with cash flow multiples of 5X or 6X, while the rest will be potential platform or add-on investments. "Even though they raised $1.5 billion, this is still a middle-market firm," he said. "The only real difference in terms of their types of investments will be that they've shifted a bit from only doing their bread-and-butter rust belt deals to also investing in services-oriented types of things."
Some of The Resolute Fund's largest limited partners include: Abbott Capital Management, Adams Street Partners, AMR Investments (American Airlines), HarbourVest Partners, NIB Capital, Pantheon Ventures, Pathway Capital Management, Teacher Retirement System of Texas and the Government of Singapore. Approximately 15% of the fund's LPs were from Western Europe, including a large number from the UK.
Contact Dan Primack|
|...it's a pity Jordan/Zalaznick sold such a big chunk of UTI before its IPO or they would be sitting on half a billion dollars from that deal alone...ouch!|
|... the market seems to agree: a nice little rise against the current trend, today.|
|thats a big chunk of cash about a third of mkt cap i think.
imho a good long-term hold, or buy.
"The Directors of JZEP are pleased to announce the sale as part of a secondary issue of 0.9 million shares in Universal Technical Institute, Inc. ("UTI") for a consideration of $41.2 million leaving the Company with a holding of approximately 1.1 million shares in UTI.
"As a result of this disposal, the available cash for investment by the Directors amounts to approximately $122.8 million.2
Haven't had chance to evaluate this, but the initial 0.5p drop is probably in line with a weak US market.|
|have followed jze and its predecesor for years. below is a piece about the big brother to this fund, from which the new mez policy will be fed from...
|Lost a little of its 10% gain, but hopefully it will consolidate around 129. Still willing to hold until the general market turns.|
|Really , really nice chart.
Got in just below a £1 and have continued with small buys over the last couple of months. Now 10% of my portfolio, so will now wait and see.|
|The discount on this trust is wide, but deservedly so. It only values its holdings once a year. When it does, it uses an opaque process. It publishes next to no information about what it is up to, except what is required by statute. No friendly investor relations people here.
Having said that, the managers have an excellent track record in value situations and so JZE is a very good counterbalance to a portfolio which is rich in tech stocks. In this context, although JZE is opaque, it is no more risky than any individual share and it is a one hit stop for US small company old economy exposure. Americans still buy their burgers at Burger King...|
|Yes, the discount to NAV is 26.5%.
This is big, but some of their investments must
be hard to value.
Nevertheless, some institutions are buying:
Name of shareholder having a major interest:
MERCHANT INVESTOR ASSURANCE COMPANY LTD
3 Please state whether notification indicates that it is in respect of
holding of the shareholder named in 2 above or in respect of a non-beneficial
interest or in the case of an individual holder if it is a holding of that
person's spouse or children under the age of 18:
4 Name of registered holder(s) and, if more than one holder, the number of
shares held by each of them:
BANK OF NEW YORK (NOMINEES) LTD
5 Number of shares/amount of stock acquired:
6 Percentage of issued class: