Avi Global Share Discussion Threads

[davebowler] 30/3/2020 10:18

27 March 2020


AVI GLOBAL TRUST PLC

It is announced that the un--audited 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 26th March 2020 was as follows:

Net Asset Value -- Debt at par value: 650.46 pence
Net Asset Value -- Debt at market value: 634.84 pence

[davebowler] 25/3/2020 09:43

Liberum-
Pershing Square Holdings

Unwinds hedges to reinvest in equity markets

Mkt Cap £3,031m | Prem/(disc) -38.5% | Div yield 2.6%

Event

Pershing Square Holdings has unwound the hedges it had purchased to combat the market volatility caused by the Covid-19 outbreak. The company has since used the proceeds to increase its exposure to existing and new investments. Since the company purchased the hedges, equity and credit markets declined dramatically, while the value of the hedges increased significantly.

PSH completed the exit of its hedges on 23 March, generating proceeds of $2.1bn for the fund, compared with premiums paid and commissions totalling $27m, which offset the mark-to-market losses in the equity portfolio. The hedges were in the form of purchases of credit protection on global investment grade and high yield credit indices. The company has redeployed substantially all of the net proceeds, adding to its investments in Agilent, Berkshire Hathaway, Hilton, Lowe’s, and Restaurant Brands. It has also purchased several new investments including Starbucks (which it sold in January). Current cash accounts for c.17% of the portfolio.

Liberum view

The hedges PSH purchased appear to have succeeded in limiting the volatility caused by the coronavirus outbreak. The company's NAV outperformed the S&P by 14.9% from 28 February to 17 March. This is despite the fact that the underlying portfolio companies have largely suffered losses greater than the index. The manager believes now is the right time to reinvest in equity markets, following their sharp sell off since the end of February. The US government and US Treasury have announced substantial stimulus packages to boost the economy, with more expected to be passed in the coming days. Since PSH fully unwound its hedges, the S&P 500 has increased by 9.4%.

[davebowler] 10/3/2020 17:45

'Japanese smaller companies might be big winners if there is a sustained slump in the oil price as this country must import the black stuff because it has none of its own. BGS was a top 10 holding by value until recent underperformance but still shows strong medium to long-term returns.'

[lowtrawler] 05/3/2020 22:32

I like this trust. It is holding real underlying value which can be unleashed in co-operation with management teams. I have sold over half my holdings in recent days but retained AGT. The >10% discount to underlying asset value unfairly discounts the probability of AGT successfully working with the management teams. I suspect the current market self-off will motivate greater co-operation and extract greater value.

[vacendak] 22/2/2020 19:36

Activism in action:

[davebowler] 22/1/2020 10:10

At the close of business on 20th January 2020 NAV was as follows:


Net Asset Value -- Debt at market value: 884.36 pence

[davebowler] 16/1/2020 08:52

HTtps://masterinvestor.co.uk/funds-and-investment-trusts/nippon-active-value-fund-to-target-corporate-governance-reforms-in-japan/?utm_source=Daily+Bulletin&utm_campaign=309e5edc9b-Daily_Bulletin_20200115&utm_medium=email&utm_term=0_25eff0bb7f-309e5edc9b-34956193

[cordwainer] 05/1/2020 14:23

Chunky final dividend due tomorrow, 14.5p / share.

[davebowler] 03/1/2020 15:26

Net Asset Value 2/2/20 with debt at market value: 861.14 pence

[vacendak] 26/12/2019 20:41

There are indeed some good bets to put on Japan at the moment, hence my holding AVG and AJOT from the AVI stables. The winners remain hard to pick, but AVI is either lucky or good at it.

What I meant to say is that an investment trust generally avoids (not even sure if they can) holding directly, and openly, another investment trust run by the same company. So AVG does not hold AJOT directly but seems to use the same people to pick the same companies for both trusts.

[davebowler] 26/12/2019 19:43

hTTps://trustintelligence.co.uk/articles/is-there-a-generational-opportunity-in-japan-nov-2019#Mention of part of our strategy, similar to AJOT.

[vacendak] 26/12/2019 19:35

Just catching up with my reading of the factsheets.

It seeems that the "Japanese basket" buys the same, or silimar companies, as AJOT (AVI Japan Opportunities).
Nothing wrong with that, but the reporting on the Toshiba buying its subsidiaries story shows up in both the latest factsheets from AVG and AJOT.

AJOT has had a slowish start but has been doing nicely of late. AJOT has always traded at a premium too.

[davebowler] 19/12/2019 10:42

17 Dec Net Asset Value -- Debt at market value: 844.17 pence

[davebowler] 19/12/2019 10:29

One of ours-
12 December 2019

Oakley Capital Investments Limited

Oakley agrees sale of WebPros to CVC Fund VII and follow-on investment

-- Proceeds: OCI's share of proceeds is approximately GBP110 million - a 92% premium to the 30 June 2019 interim carrying value

-- NAV increase: The sale results in an uplift of 26 pence per share - an 8.2% increase in the total NAV per share at 30 June 2019

-- Returns: The WebPros exit generates a gross return on investment of 6.7x MM, c.140% IRR
-- Follow-on investment: Fund IV to invest $200 million alongside CVC Fund VII; OCI's share of this investment is expected to be GBP43 million

[davebowler] 13/12/2019 12:33

Nov report out -

[topvest] 01/12/2019 17:43

Yes, same with Foreign & Colonial. PC stupidity in my view. These names have survived for well over a 100 years and have historical significance. Changing the name doesn’t erase history.

[vacendak] 29/11/2019 10:18

Joe Bauernfreund definitely whipped it back up into shape.
I had exited after years of underperformance then got back into it a few years ago.
For me it is now a case of following the manager. I got into AJOT too at IPO time because of him. I hope he stays on.

Sadly we lost the cool "British Empire" name. :(

[topvest] 28/11/2019 17:49

It’s a quality trust that is difficult to replicate in your own portfolio, and the c10% discount makes it a compelling proposition in my view. The last decade has been relatively poor for the trust with returns of only c8.5% per annum. I’m reasonably confident and hopeful that it will do better than that over the next decade. In its earlier days, it achieved very good returns indeed.

[steve3sandal] 28/11/2019 12:02

Probably why the share price has been strong recently. They look like long term holders for value to play out. I've held since 1997 and may not live to see them at par again but I'm a little hopeful.

[rambutan2] 27/11/2019 19:36

Noted. New 3% shareholder:

[topvest] 18/11/2019 17:38

Yes, it’s my friend, the invisible stalker, who’s probably a Woodford fan!