Avi Global Share Discussion Threads

[davebowler] 15/2/2022 09:10

Proxy for part of our portfolio -

[vacendak] 09/2/2022 14:18

@BiggestBill

Thanks for the link.

When the "uppercase in http" trick does not work, ADVFN still lets us put the www.

www.trustnet.com/news/13288847/the-second-best-global-trust-in-2021-why-is-its-discount-double-its-sectors



[Edit]
I had used a link to an article that has nothing to do with AGT earlier.

[biggest bill] 09/2/2022 11:14

Here is another excerpt.

However, it could be one of the sector’s beneficiaries if the value rally can continue, Johnson said.

“It’s highly idiosyncratic return profile (driven by a combination of active engagement and discount opportunities) could mean that it may still be able to generate strong returns in the current bear market, though investors should be aware that it is not an ‘absolute return’ fund per se.” This could be appealing if market drawdowns continue to spike, such as the one at the start of the year.

Priyesh Parmar, associate director of investment companies research at Numis investment bank, was also bullish about the trust, stating that he would be “happy holding AVI Global”.

“The 8% discount on the listed fund offers some value and the fund does engage in buybacks which helps to limit the downside.”

James Carthew, head of investment companies at QuotedData, seconded this sentiment, adding: “In a world where speculative growth stocks are out of favour, AVI Global’s portfolio of decent businesses that the manager believes are valued at a sizeable discount to their true worth is holding up well.”

Carthew picked the trust as his favourite portfolio for last year and remained optimistic about its return prospects in 2022.

There were other reasons to be bullish on the trust, such as the current growth sell-off, which has hit US equities especially hard.

American companies make up the biggest regional weighting in the AVI Global trust (28%), but it is not as heavily biased towards the region as others. Europe is its second largest position at 26% with Japan at 24%.

This relative underweight – the US makes up 69.3$ of the MSCI World index for example – is something that adds to the trust’s appeal, according to Anthony Leatham, head of investment trust research at Peel Hunt, given the headwinds facing the market at the moment.

The trust’s Japan allocation does leave some pause for thought though, Leatham said, and investors will have to take a view on that market when deciding to invest.

Japanese equities have been a marmite sector for investors since the late 1990s crash which still lingers in the minds of some investors’. Others have been kept away by its affiliation with poor corporate governance.

Japanese companies are still transitioning to being pro-shareholder, a decade on from when then-prime minister Shinzo Abe’s ‘AbenomicsR17; scheme was first introduced, but Bauernfreund regards this as a great opportunity, by using active engagement to unlock potential shareholder value, a practice he regularly partakes in, Leatham added.

Based on all these components and current discount, overall Leatham gave the trust a ‘hold’ rating.

[biggest bill] 09/2/2022 11:05

There is a decent write up at Trustnet. I cannot post the link for some reason. Here is an excerpt.

A low allocation to the US, “rare” investment style and strong defensive track record, are some of the reasons analysts think the AVI Global trust is worth snapping up at a discount.

Joe Bauernfreund’s £1bn AVI Global Trust is a distinctive member of the IT Global sector, due to its different approach towards value investing.

Pigeonholing the trust as value, however, underestimates what the manager aims to achieve, the experts said. Rather than focusing on cheap valuations or out-of-favour names, he looks for high-quality but under researched companies trading at a discount.

David Johnson, an analyst Kepler Trust Intelligence, said he runs “one of the rarest approaches to global equity investing available in the open- and closed-ended universes”.

The end portfolio is full of attractive valuations without being explicitly value, he said, “creating a highly idiosyncratic portfolio that can avoid some of the risks associated with the value style”.

However, this process comes with benefits and drawbacks in terms of performance. Near term this approach has come into its own and protected investors’ returns better than some of the stalwarts of the sector as the market and economic environment has become more challenging thanks to central banks moving away from looser, more liquid monetary policies into a period of tightening.

In the past year AVI Global made 16.3%, the IT Global sector’s third best returns. This compares favourably with the likes of renowned investment trust Scottish Mortgage, for example, which lost 19.6%, the second worst performance during that time.

[vacendak] 09/2/2022 10:22

Better being told late than never! :)

[davebowler] 09/2/2022 09:42

The halfwits at 'Embark' platform emailed me yesterday with the 'news' that AGT is doing a 5 for one split!

[davebowler] 17/1/2022 15:21

AJOT Potential Share Issuance -
Webinar-


We continue to see an attractive investment environment and have identified six high conviction opportunities, comprising three new
and three existing companies where AJOT could increase its position. To capitalise on these opportunities, we are exploring the most
appropriate way of funding them, including a potential equity raise under the Company’s existing authorities. Alongside this option we
are considering the possibility of increasing gearing, and/or recycling of some of the existing portfolio. The six identified opportunities
could account for up to 35% of AJOT’s NAV, as the new capital is being sought to build large stakes to accelerate events and realise
potential upside

[vacendak] 17/1/2022 09:45

Bauernfreund must have bought some "deep value" magic beans that have refused to grow. :)

[monster500] 17/1/2022 08:37

The sub-division is conditional on approval by shareholders at the Annual General Meeting and is also conditional on the new ordinary shares being admitted to the Official List of the Financial Conduct Authority and to trading on the London Stock Exchange's main market for listed securities. Applications for such admissions are being made and it is expected that such admissions will become effective, and that dealings in the new ordinary shares will commenc

[kb267] 17/1/2022 08:35

Share split 1:5See announcement on 10 Jan 21.

[kkclimber56] 17/1/2022 08:29

What is going on? Todays price down 80%

[vacendak] 02/1/2022 10:21

Same subject, article also dated 23/12/2021 (I have just caught this on the weekly email roundup from Citywire), some additional bits on the story with AVI and Straude stating they had supported the chairman and found it unfortunate he had to resign. In other words, they deny having pushed him.

As for the rest, AVI and Straude do not have (yet?) the numbers to force anything, likely due to the voting structure.

[topvest] 23/12/2021 20:37

All getting rather nasty. One gets the feeling there is more to the resignation than is being said. Not sure Dan Loeb can be trusted really. Without a Chairman they are in a bit of a mess though, and I suspect there won't be a long queue of takers!

[marktime1231] 23/12/2021 12:43

Reports in the last few days that Steve Bates the chairman of Third Point Investors has been forced in to resigning under pressure from activist investors from AVI and Staude Capital. Dan Loeb, having rejected AVIs previous approaches requesting more attention to closing the wide discount on TPOU, now complaining at their underhand aggressive tactics. Boo hoo! No doubt it does not help that TPOU has suffered a rare 10% share price slump in recent weeks. Not sure where this is going to end up but AVI are not letting go.

[vacendak] 17/12/2021 09:49

Nice bet on Wacom, it went up sharply.

[biggest bill] 17/12/2021 08:13

The November factsheet is out.

[marktime1231] 09/12/2021 21:42

Since you have not been wittering on about AJOT, or anything, and make helpful observations on topic that was obviously not a remark to you, but thanks for the feedback.

[steve3sandal] 09/12/2021 19:13

Mt123, I'm wittering on!? A very brief polite answer to a question about AGT. I've been here since John Walton and 117p and would probably choose AGT as specialist subject. Fortunately we have an excellent manager here and I'm only mystified why the discount persists. I've just read your recent lecture on portfolio construction on this thread....hmmm.

[marktime1231] 09/12/2021 18:18

You guys do realise you are wittering on about a related investment on AGTs board as though AGT is the subsidiary? What affects the price here is much more likely to be driven by concentrated holdings in things like Pershing Square and Third Point.

Get your own board or get on topic you are spoiling it.

Please and thank you.

[steve3sandal] 09/12/2021 15:13

No. NAV just announced is fine £1above share price Ergo it's an opportunity.

[vacendak] 09/12/2021 15:00

Kind of a nasty drop today, not seen in similar/global ITs.
We do not hold Evergrande (defaulting today) through AGT do we?