AGT’s double discount is around the widest it has been since the aftermath of the 2008 crisis… |
One of our holdings gets a mention here - |
They're certainly keen on private equity having added Brookfield, along with existing positions in KKR, Apollo and Oakley (plus their PE funds basket that they previously mentioned). |
As the URL says:
It gives the list of PE funds in the basket and their percentages. |
(Too much) gearing is sometimes a worry but it is only around 5% of mkt cap? Well if I could borrow £49M at 1.38% fixed for 10 years in order to invest in 30-40% discounted stock I would too. Keeping up the pressure on funds to buyback their own stock cheaply and doing some itself, but in small measures. As a consequence is that why the dividend has shrivelled then, I know this is not about income but it was welcome. A bit of confidence returning to the market to take us back to the 220's and we can put a tough year behind us. AGT remains the best performer in my long term portfolio, favourites like SMT, Shin and Nimmo are nowhere in sight. |
The PE thing is, adequately, discussed in the "The Private Equity thread". |
Just in the Annual and Half Year Reports I think. |
The PE/VC additions are interesting, the funds I hold or watch are all on large discounts @ 40%. Do AGT publish the full portfolio anywhere? |
Sept factsheet. |
The monthly factsheet for August is out. |
AGT has had some beef with them earlier this year.
Joe Bauernfreund has not updated us on this saga for a while now.
This one is an interview with Joe Bauernfreund on Quoted Data
Direct link to video:
He talks about AGT and AJOT, more focused discussion, holding by holding, comments on discounts.
We learn that there is now only around 40% overlap in Japanese equities between AGT and AJOT. AJOT being used for smaller more illiquid holdings.
Bauernfreund says that 90% of his personal investment are in a mix of AGT/AJOT and other AVI funds. We need to take his word for it on that one of course. |
Same as for the one on the AJOT thread: It got posted on LinkedIn.
Nothing new, just the usual AGT blurb in a more recent video. |
One of our major holdings -
Liberum;
Note: Sector-leading performance
Mkt Cap £704m | Share price 396.5p | Prem/(disc) -37.1% | Div yield 1.1%
Event
EBITDA growth was the driver of OCI’s 17% H1 NAV return and has been the bedrock of the company’s sector-leading 23% 5-year NAV CAGR. Exit activity in H1 has again demonstrated the upside from the relatively mature portfolio. Conservative book values, strong EBITDA growth, and scope for further realisations leave OCI in a strong position to maintain its high returns. The shares offer material upside from the current 37% discount, and we upgrade our TP to 650p (from 533p).
Note: Oakley Capital Investments* (BUY, TP 650p from 533p) – Sector-leading performance |
That's the great thing about PSH "bets". They are asymmetrical. Low downside, massive upside. The COVID-19 was a US$27M investment closed out for US$2.6BN (i.e. they would only lost US$27M if it hadn't of worked). On the flip side if the hedge doesn't work then their equity holdings normally shoot up in value. |
PSH is currently doing great and it is Joe Bauernfreund's job to hold onto it for as long as it is winning.
I am a bit concerned that things at PSH could turn ugly the day some of the bets sour.
I mean, I am happy to hold indirectly through AGT, I am not going to complain while the formula is winning. Recently, I had been looking into holding some directly but got cold feet about buying on the way up. |
I think Bill Ackman's portfolio choice is normally pretty sound, but his counter-cyclical hedging operation is quite brilliant. The Covid-19 hedge was probably the best trade any closed-ended manager has ever pulled-off. Buffett hasn't even pulled off such a brilliantly timed deal. |
I like Pershing Square and Bill Ackman. Appendix A to his half year report is interesting. I hadn't realised that SMT was the biggest closed end fund in the world and Pershing Square are 3rd.
London leads the way. We should be shouting about this - we even beat the US with 44 of the top 100 big closed-end funds . It's quite surprising to me that there are not any bigger US closed-end funds. |
The June update is out. |
(paywall) www.youinvest.co.uk/sharesmagazine/2022-06-30/buy-avi-global-for-a-new-spin-on-value-investing |
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