Avi Global Share Discussion Threads

[riverman77] 23/4/2024 17:51

It should be noted that AVI have held SONG for a long time so would have initially suffered losses on this position. They more recently increased their stake as discount widened, but hard to say if overall they've made a profit. I'm sure there'll be more detail in due course.

[davebowler] 23/4/2024 17:10

Net Asset Value per Ordinary share (inclusive of accumulated income) of AVI Global Trust plc, at the close of business on 22nd April 2024 was as follows:

Net Asset Value ‑ Debt at par value: 256.69 pence

Net Asset Value ‑ Debt at fair value: 259.67 pence

[vacendak] 22/4/2024 09:48

This one has turned out to be a good bet on "let's take a stake and twist their arm".

We had to admit defeat on LMS and Third Point in the past few years.
In a way Joe Bauernfreund knows when to cut losses, which is to his credit.

[18bt] 18/4/2024 07:20

Looks a good result on Hipgnosis

[davebowler] 09/4/2024 10:46

hTTps://www.trustintelligence.co.uk/articles/fund-profile-avi-global-trust-mar-2024?utm_campaign=weekly-2024-04-09&utm_medium=email&utm_source=followfund

[davebowler] 03/4/2024 10:12

Kepler
AGT is trading at close to its widest ‘double discount’ since the Great Financial Crisis…


AVI Global Trust (AGT) offers investors a highly differentiated exposure to global equities. Portfolio construction is centered around identifying high-quality companies trading at significantly depressed values to their estimated NAVs. This leads to a particular focus on closed-ended investment funds, family-backed holding companies, and Japanese smaller companies.


Macroeconomic uncertainties and elevated levels of risk aversion have seen discounts across investment trusts widen significantly, this a resulted in an increased exposure to listed private equity and venture capital investment companies. AGT’s own discount of 10.9% is currently at wider levels than its five-year average discount, which combined with the wide discount for the underlying investments, means AGT is trading close to its widest ‘double discount’ since the Global Financial Crisis in 2008.


The team also look to add value by taking a highly active approach - particularly through their allocation to Japan, where the team see the improved macroeconomic environment and focus on corporate governance as an opportunity. Furthermore, their regional expertise allows them to take a consultant-like engagement approach with the aim of making significant improvements to business operations.


AGT’s performance has been impressive across both the short and long term. In our view, with AGT’s ‘double discount’ being close to historically wide levels, now could be one of the best opportunities to invest in the trust for a long-term investor looking to gain exposure to a truly benchmark-agnostic, global equity investment strategy. As interest rates look to be peaking in the US and the UK, and the premise of a softer landing becomes a more probable outcome, this bodes well for the potential NAV appreciation of the underlying holdings, particularly the increased allocation to private equity, and for the wider-than-average discount of AGT itself.

[davebowler] 03/4/2024 08:42

hTTps://citywire.com/investment-trust-insider/news/asset-value-investors-hails-chrysalis-inflection-point-with-5-7-stake/a2439531?re=118915&ea=

[horseyphil] 24/3/2024 12:32

Selling the likes of Pershing Square to buy SONG was not Joe's smartest move, and I share the concerns about moving away from a proven strategy to buying single companies. Have great respect for the AVI management, but won't be adding to my holding if this is the direction the Trust is moving in.

[davebowler] 22/3/2024 15:05

21/3
Net Asset Value ‑ Debt at fair value: 252.99 pence


The interest reference rates used to calculate the fair value of the long term debt issued by the Company incorporated within the Net Asset Value - Debt at fair value were previously updated on a monthly basis. With recent market volatility in the interest reference rates the calculation of the debt at fair value has been updated daily since the 27th of September 2022. This does not impact the Net Asset Value - Debt at par value.

[davebowler] 17/3/2024 17:48

htTPs://www.thisismoney.co.uk/money/markets/article-13204513/City-bosses-tell-Chancellor-investments-crippled-EUs-7bn-savings-bombshell.html

[steve3sandal1] 16/3/2024 10:13

Looked a bit closer at Entain. Hmm. AVI usually invest in great business management and underlying great businesses. I can't see this here. I hope it's not another SONG. Not that thrilled by this single co investment strategy. I hope Joe and Co know what they are doing.

[steve3sandal1] 14/3/2024 10:26

Slight change perhaps in strategy? 2 new single co holdings Entain and Frasers disclosed in Feb Fact sheet. Interesting. I've noted a few others chasing Frasers as I've little doubt they'll do what they can to get to £15 by Oct 25. Show me an incentive and I'll tell you the outcome to paraphrase the late CM.

[davebowler] 11/3/2024 14:47

.......
Worst over for GCP Infrastructure
Elsewhere in the Citywire-award winning portfolio, Bauernfreund has opened a position in GCP Infrastructure (GCP), the infrastructure debt fund run by Gravis Capital, which has seen its discount fall to 32% following a 20% share price decline over the past 12 months.

An aborted three-way merger between GCP Asset Backed Income (GABI) and RM Infrastructure Income (RMII) last year, combined with interest rate rises and negative sentiment towards the sector have all weighed on the investment company.

‘We look at asset classes where we think there is probably some mistrust in the reported NAV, and we possibly have a greater degree of confidence around the NAV.

‘Certainly, given GCP Infrastructure’;s discount level, we see a higher margin of safety,’ he explained.

Entain (ENT), the gambling business, represents another new position in AVI Global. Bauernfreund said it appeared on the team’s radar after it started to come under pressure from activist investors to sell its assets.

‘I think there is interesting potential for a sale of the assets, which could be beneficial for shareholders in Entain and other entities we have an interest in,’ the fund manager explained.

Value fund that’s come good
Bauernfreund has run AVI Global for over eight years. In the bull growth market, its value strategy, with a comparatively light 24% exposure to the US, struggled to compete with some of its rivals in the AIC Global sector.

The advent of inflation and higher interest rates over two years ago has turned the tables, however, with the trust generating a 75.2% total shareholder return that beats the 71.6% of the MSCI World index and ranks it third in its 13-strong sector where the average return has been just 58.7%.

On an 8.5% discount is no longer quite the bargain it was last October when the shares lagged the portfolio by nearly 13%.

However, that ignores the potential ‘double discount’ given that 30% of its assets are in UK closed-end funds trading well below asset value. Three of its top 10 positions, for example, are held in private equity funds Oakley Capital (OCI), Princess (PEY) and Pantheon International (PEY) that stand on 25%-32% discounts despite good long-term performance.

A further 17% is allocated to Japanese smaller companies still trading on depressed valuations and high levels of cash where government and shareholder pressure are gradually unlocking value.

[davebowler] 11/3/2024 14:45

htTTps://citywire.com/investment-trust-insider/news/bauernfreund-hipgnosis-is-playing-my-tune-says-avi-global-bargain-hunter



Bauernfreund: Hipgnosis is playing my tune, says AVI Global bargain hunter
Last week's big writedown at Hipgnosis Songs was a positive development for activist Joe Bauernfreund who holds 5% of the shares and stakes in other under-valued funds and holding companies in the AVI Global Trust.
Danielle Levy
BY
DANIELLE LEVY

While investors initially took fright last Monday after Hipgnosis Songs (SONG) slashed the value of its music royalties by 26% (with a 31% drop in net asset value), AVI Global (AGT) fund manager Joe Bauernfreund viewed the announcement as an important step in a potential turnaround.

The news sparked an 8% fall in Hipgnosis’ share price to 57.9p on Monday 4 March as the board suspended dividends for the foreseeable future to focus on paying off the fund’s $674m debt pile.

However, the shares subsequently recovered to end Friday at 62.7p, just below where they began the week, but still on a significant 31% discount to the new net asset value (NAV) that bargain-hunter Bauernfreund hopes will narrow and boost the return on the investment.

Bauernfreund (below) believes the board of SONG may well have been ‘kitchen sinking’, or rather presenting all the bad news to investors in one go in the hope that things can only improve from here. He views the NAV announcement as a necessary step so the board and shareholders can understand what the portfolio of 65,000 songs is truly worth.

Joe Bauernfreund - AVI
‘The final number was slightly below where we thought a realistic NAV was but not massively so,’ said the manager of the £1bn AVI Global trust, which targets undervalued companies and investment trusts and holds 5% of SONG.


Hipgnosis’ operative net asset value (NAV) was 92p per share at the end of December, according to new valuer Shot Tower Capital. This is a sharp decline from 142.49p at the end of September, a valuation provided by former valuer Citrin Cooperman.

Board on right track
‘I think the new board is doing the right things. There is a sense they are “kitchen sinking”, but I think that was necessary. We need them to come in and really get to grips with what occurred under the previous board and manager, to understand what we own and what its value is.’

Once this has been ascertained, the board can decide whether to wind up the fund; sell the assets to bidders and return capital to shareholders; or appoint a new fund manager to replace Merck Mercuriadis’ Hipgnosis Songs Management (HSM).

From here, Bauernfreund would like the trust’s contractual arrangement with HSM to be ‘resolved̵7;. Ideally, he would like to sell AVI’s investment at NAV and move on to other opportunities. However, he acknowledged this may not be possible if it comes at a big cost for Hipgnosis.


Asset Value Investors (AVI), where Bauernfreund is also chief executive, has held a position in Hipgnosis since 2020 and increased its stake ahead of a continuation vote in October. At the time, it successfully lobbied other shareholders to vote against the vote and to block a proposed sale of a fifth of the company’s assets to a related party, Hipgnosis Songs Capital (a partnership between HSM and Blackstone).

Investors late to the party
Following a tumultuous year for the music royalties fund, Bauernfreund suggests there are several lessons to consider.

‘I think a lot of investors bought in thinking it was a magic sector that was able to give them uncorrelated returns to equity markets, that were unlikely to ever go down in value and would forever provide them with an attractive income.

‘A number of factors conspired to challenge that notion. First of all, interest rates going up has an effect on valuations. It is pretty basic, but I think some investors forgot that.’

Secondly, he notes the management arrangement with HSM was not set up with the best interests of shareholders in mind. Here, he is referring to incentives for the manager to buy assets that ‘were not fantastic in all cases’ in order to grow the investment trust and management fee.

‘The arrangement between the manager and Blackstone had conflicts built into it and I guess the previous board was not on top of that. Now shareholders find themselves in a situation where they might be aggrieved with the manager but find it very difficult to remove them,’ he added.

Bauernfreund remains positive on the prospects of the music industry in general, particularly in light of the potential growth of streaming services, but says Hipgnosis’ structure and contractual arrangements have caused it to disappoint.

There may also be a broader theme of private investors getting access to an asset class, long after institutional investors, at a point when returns are harder to come by.

‘Over the years we have seen this time and time again. Investors get excited about a new asset class or one that institutional investors have access to. By the time retail investors are invited to the party it is perhaps drawing to a close,’ he concluded.

[davebowler] 11/3/2024 14:30

A good part of our portfolio -
hxxps://www.investcentre.co.uk/articles/why-sinking-yen-big-market-story?

[davebowler] 01/3/2024 08:51

All time high.

[davebowler] 01/3/2024 08:51

Master Investor -
Double Discount
Another of their new additions is AVI Global (LON: AGT), which has an unusual mandate in that it seeks to find overlooked, undervalued stocks with a potential catalyst to narrow the discount. The portfolio consists of a mixture of investment trusts, holding companies and Japanese shares, with the managers actively working to improve corporate governance to unlock the value.

AVI offers discounted exposure to cheap investment trusts including a basket of listed private equity funds, as well as Hipgnosis Songs. There are also various European holding companies, such as EXOR and Aker, as well as alternative asset managers like KKR and Brookfield AM.

Numis think that it might be a good time to invest in the fund, based on the double discount. The shares trade nine percent below NAV and there is significant value in the underlying holdings, which trade on a weighted average discount of 33% as at 31 December.

[davebowler] 29/2/2024 14:13

28th February 2024 was as follows:



Net Asset Value ‑ Debt at fair value: 249.64 pence

[davebowler] 25/2/2024 20:47

Good mention here-hTTps://citywire.com/investment-trust-insider/news/buy-this-private-equity-fund-pregnant-with-gains-on-old-investments/a2436743?re=117852&ea=252901&utm_source=BulkEmail_Investment+Trust+Insider+Weekend&utm_medium=BulkEmail_Investment+Trust+Insider+Weekend&utm_campaign=BulkEmail_Investment+Trust+Insider+Weekend hi

[davebowler] 21/2/2024 09:21

Relevant to part of our holdings ..
New research

[davebowler] 19/2/2024 15:44

Fastcat99-





Fund platforms are routinely ignoring a five-year-old piece of regulatory policy when they move funds from one provider to another, it has been claimed.

In 2019 the FCA published its ‘making transfers simpler’ PS19/29 policy statement which mandated that platforms ‘routinely offer consumers in-specie transfers and unit class conversions as part of the transfer process’.

But, five years later, many platforms are not adhering to this, and are simply encashing investments before transfers take place. This was the view expressed by David Moffat, senior director of SS&C, at a Citywire roundtable of platform bosses.

‘The first thing is to recognise that PS19/29, we’ve ignored,’ said Moffat, who is also the chair of the Tisa Exchange (Tex) legal framework for platform transfers.

‘PS19/29 made it quite clear that the default mechanism for all transfers should be in-specie and not go to cash. Because of the perceived delays involved in the re-registration process, we all have an enablement that basically says encash all.

[davebowler] 19/2/2024 09:04

Net Asset Value per Ordinary share (inclusive of accumulated income) of AVI Global Trust plc, an investment trust managed by Asset Value Investors Limited, at the close of business on 15th February 2024 was as follows:


Net Asset Value ‑ Debt at fair value: 252.32 pence