Blue Capital Share Discussion Threads

[jonwig] 31/5/2017 07:11

"Further to the passing of the ordinary resolution at the Company's Annual General Meeting on 9 May 2017, the change of the Company's name to Blue Capital Alternative Income Fund Limited has now been completed. Trading of its ordinary shares under its new TIDM, "BCAI" will become effective on the London Stock Exchange from 8am on 31 May 2017. The ISIN and SEDOL remain unchanged."

New thread:

[jonwig] 21/3/2017 18:36

Partial redemption of redemption shares on 31 March.

Distribution of $13,138,580 among 19,855,391 redemption shares. That is, about 66c per share, a bit over half the assets.

[jonwig] 19/12/2016 14:34

A 15% discount to NAV here (30/11 value) looks a bit extreme, given CAT's premium. The tender will help, but it's a bit clunky.

[jonwig] 04/11/2016 08:57

My strategy might be to tender all of my holding, so getting an optimum number of red shares. Then buy more ords as each redemption date approaches, providing the shares trade at a discount. Since others could do the same, the discount (currently 11%) could narrow on a long-term basis.

[jonwig] 04/11/2016 07:37

Tender offer, complicated! ...

[jonwig] 21/10/2016 07:46

Hurricane Matthew, which devastated parts of the Caribbean before battering the U.S. East Coast, may cost insurers as much as $8.8 billion, according to AIR Worldwide.

The catastrophe-modeling firm estimates insured losses range from $2.2 billion to $6.8 billion for the U.S. and from $600 million to $2 billion for the Caribbean.
...
At $8.8 billion of insured losses, Matthew wouldn’t make it to the top 10 list of the costliest claims for insurers and the re-insurers who help them shoulder risks.



May help explain why there has been no cautionary statement from BCGR or CAT.

[jonwig] 19/10/2016 16:27

September NAV published, 2.8% performance over the month. Tender offer should be between 1.09 and 1.12 I'd think. About time they announced this. And no comment on Matthew from either BCGR or CAT.

[kev0856153] 05/10/2016 21:51

I'll keep an eye on it. It's very illiquid and hardly any trades. Very few posts as well.

[jonwig] 05/10/2016 17:46

I'd have said relatively low until last weekend - hurricane Matthew is likely to pass along the east coast of Florida from tomorrow. I'd imagine that could be significant enough for a few cents off the NAV.

The flip side of that would be hardening reinsurance rates and future higher returns.

This hasn't been a sparkling investment(compare CAT, much better), but it's giving me a steady yield of over 6%, and the coming tender offer will be useful. And it's uncorrelated with equity markets.

[kev0856153] 05/10/2016 16:13

This looks quite interesting but where does it sit on the risk scale? Low, Medium or High? TIA

[jonwig] 19/9/2016 20:08

31/08 NAV up smartly to $1.0933. No mention of loss reserves of provisioning.

[jonwig] 02/9/2016 10:42

From Dec 2012 prospectus:

The price at which the Ordinary Shares may be tendered will be determined by the Directors at the time of such tender offer but is currently intended to be at the Net Asset Value per Ordinary Share on or around the record date for the tender offer less a pro-rated share of the costs of the tender offer

So the relevant price could be determined after the 31 August NAV calculation and might include a loss
provision for Hermine.
Not a very large one, according to the Artemis blog.

[rambutan2] 02/9/2016 09:59

Good spot Jonwig.

Proposed Tender Offer

The Company's shares have traded at an average discount of more than 5 per cent. to the net asset value per Ordinary Share over the three month period ending on 31 August 2016. As a result, the Directors intend to offer shareholders the opportunity to tender Ordinary Shares in issue in accordance with the discount management policy of the Company implemented at launch. Proposals to effect the tender offer will be put to shareholders in due course.

[jonwig] 02/9/2016 07:11

I don't know whether the 31 August NAV will include a provision for Hurrican Hermine, but the 30 Sept one should show some impact.

First category 1 hurricane to hit Florida in 11 years:



Probably a couple of weeks before company can make a loss estimate statement. However:

[jonwig] 01/9/2016 08:50

Very likely:

"The Ordinary Shares traded at an average discount to their Net Asset Value of 9.6 per cent. over the period. [31/12/15 - 30/06/16.] The Company's discount management policy, adopted at the time the Company was launched, includes a requirement for the Directors to consider a tender offer if the shares trade at an average discount of more than 5 per cent. to the net asset value per ordinary share over the three month period ending on 31 August each year. In the event this proves to be the case in 2016, the Directors intend to offer Shareholders the opportunity to tender up to 25 per cent of Ordinary Shares in accordance with this policy."

The average discount appears to be well over 5%. has this been overlooked by the market?

[jonwig] 18/8/2016 15:52

May provisions for events in US, Canada, Japan impacted that month's NAV. Latest for July appears to write these back, though danger period comes from now to November.

Discount of 12.5% to NAV looks excessive compared with CAT's. There's a share buyback process in place which ought to help if used.

[jonwig] 31/12/2015 06:29

Reinsurers hit by falling renewal prices:



Hence the point of post #4

[jonwig] 17/12/2015 12:26

The discount here contrasts with the premium on CAT. The latter has been more rewarding, but it also has greater cat exposure, so risks also greater.

Target returns reduced to LIBOR + 8% but management fees down too. Dividend policy unchanged at LIBOR + 6%.

[jonwig] 12/9/2013 08:59

BCGR listed on the the London Stock Exchange's Specialist Fund Market ("SFM") (ticker: BCGR) and the Bermuda Stock Exchange on 6 December 2012, raising $100.1 million. The Company subsequently raised $52.3 million pursuant to the First Closing under the Placing Programme in May 2013. The Company provides investors with the opportunity to access the global catastrophe reinsurance market and to invest in an alternative asset class whose returns have historically been largely uncorrelated to those of other asset classes, including global equities, bonds and hedge funds.
...
The Company is targeting an annualised dividend yield of LIBOR plus 6 per cent. per annum on the Issue Price of the Ordinary Shares and a net return to Shareholders (comprised of dividends and other distributions to Shareholders together with increases in the Company's Net Asset Value) of LIBOR plus 10 per cent. per annum to be achieved over the longer term, net of fees.

Latest NAV (July 2013) $1.0158.

[jonwig] 22/5/2013 07:17

Interesting to see what they have to say re. Oklahoma tornado. [IRIS no impact, CAT not known yet - probably not zero.]

[jonwig] 19/3/2013 08:06

Please go to:



~~~~~~~~~~~~~~~~~~~~


Significant Holdings at 23/03/13 (total 100.1m shs)
Montpelier Re .......... 50,000,000 50.0%
F&C Asset Management ... 15,100,000 15.1%
Baillie Gifford ........ 10,010,000 10.0%

~~~~~~~~~~~~~~~~~~~


NAV monthly:
31/03/14 ... $1.0362
30/04 ...... $1.0352
31/05 ...... $1.0379
30/06 ...... $1.0416
31/07 ...... $1.0551
31/08 ...... $1.0429 (xd $0.032)
30/09 ...... $1.0682
31/10 ...... $1.0804
30/11 ...... $1.0831
31/12 ...... $1.0882
31/01/15 ... $1.0582 (xd $0.033)
28/02 ...... $1.0610
31/03 ...... $1.0637
30/04 ...... $1.0656
30/05 ...... $1.0673
30/06 ...... $1.0751
31/07 ...... $1.0496 (xd $0.033)
31/08 ...... $1.0701
30/09 ...... $1.0919
31/10 ...... $1.1092
31/11 ...... $1.1147
31/12 ...... $1.1217
31/01/16 ... $1.0935 (xd $0.033)
29/02 ...... $1.0967
31/03 ...... $1.1003
30/04 ...... $1.1019
31/05 ...... $1.0816
30/06 ...... $1.0871
31/07 ...... $1.0663 (xd $0.033)
31/08 ...... $1.0933
30/09 ...... $1.1239
31/10 ...... $1.1216
30/11 ...... $1.1331
31/12 ...... $1.1434
31/01 ...... $1.1180 (xd $0.033)
28/02 ...... $1.1207
31/03 ...... $1.1048
Red shs:
31/01 ...... $1.1345
28/02 ...... $1.1288
31/03 ...... $1.1257