I don't know if this article is of interest to anyone, but I wonder if a float of Starling isn't on the cards soon. |
Chrysalis Investments – Putting growing pains behind it |
Chrysalis: People want to understand our valuations are ‘real’
WATCH: Jupiter’s Richard Watts pushes back on Starling criticism, discusses why he is ‘very confident’ on Klarna, and explains how Chrysalis’ gaping 47% discount could close. |
@Bielsa - Thank you. CHRY stated explicitly (7/2) that the transaction in February was at a price which implied a slight NAV uplift, so I am not sure who (if anyone!) is telling the truth here. Thoughts welcome!
"If, following Completion, the Company's independent Valuation Committee recommends that the Board apply the "price of recent investment" approach to the Company's holding in Starling this would result in a modest uplift in the Company's NAV per share compared with the 31 December 2022 calculation." |
Anne Boden stepped down as Starling CEO after investor clash
"....However, Boden’s decision followed a clash with investors over fund manager Jupiter’s decision in February to sell its holding in the bank at a price that cut Starling’s valuation from £2.5bn to between £1bn and £1.5bn, according to people familiar with the situation.
The sale was to a group of existing investors, included Chrysalis investment trust, which is run by Jupiter fund managers Richard Watts and Nick Williamson." |
Good spot. That will have come in before today when the price was 76p - shareholders had better hope there aren't too many more sellers in size.
Can only see some of it being shifted on. |
18m traded at 65p. Quite a sell off today. Don't see any news to substantiate it. |
From The Times:One of the biggest holdings in the Chrysalis investment trust is Deep Instinct, which uses deep learning to predict and prevent cybersecurity threats, which are usually detected only after they have happened. It also holds Featurespace, which uses AI technology to combat fraud and financial crime. A less established holding is Graphcore, which makes intelligence processing units specifically designed for AI and thinks it can beat Nvidia's chips. But persuading businesses to move away from Nvidia is proving hard.James Carthew from QuotedData said: "If Graphcore can break into that market, it could be a spectacular success, but Nvidia's dominance may prove insurmountable." |
Interesting article on AI microchips, which Nvidia dominates with c95% market share. Graphcore are quoted as a UK competitor and disrupter, which represents circa 2% of Chrysalis portfolio. |
Yes sorry ALS, you are correct.
I’d just edited my last comment at same time you posted. |
No 16% is the percentage of CHRY's portfolio, not the amount of Starling equity CHRY owns.
At least that's my understanding. |
“As reported on 4 May 2023, Starling comprises 16% of the Company's portfolio as of 31 March 2023.”
But does not specifically comment on specific shareholding % of Starling. |
Can anyone please tell me what percentage of Starling equity Chrysalis own? |
buying more starling was not scandalous after all! |
Lining up Starling for a float? |
Interesting news on Smart today (also RNS'd). It appears that this funding round is at about the price of the most recent NAV.
If most of the investments are similarly reasonably valued then I think the discount to NAV is too wide.
The company claims that the vast majority of their investments are profitable or funded to profitability, surely at some point the IPO market will open up and there then may be opportunities to realise some of these investments at a profit. |
 this answers my question about CHRY and shows the published NAV is just guesswork and how can one value unquoted investments realistically ?
Has Chrysalis (CHRY) turned a corner after a horrendous 2022 for the Jupiter growth capital fund? A first quarter update on Thursday showed its portfolio of 13 mostly unquoted companies grew marginally with net asset value (NAV) adding 1.76p to 130p per share in the first three months of the year.
That small gain of 1.4%, its first advance since September 2021, is nevertheless going in the right direction after the 13.2% drop in the fourth quarter brought the total loss for last year to 46%.
Excluding currency movements, which knocked around 1.2p off NAV per share, the underlying valuations of its companies rose by 3.1p per share in the first quarter.
Having plunged 62% in the past 12 months, shares in the Guernsey investment company yesterday advanced 1.6p, or 2.8%, to 58p as some investors believed Chrysalis may have bottomed out, in which case the stock’s 55% discount to NAV is too wide. |
spectoAcc,
GROW has an awful looking chart and might be heading for 240 level again . |
is the massive discount to NAV because this trust has a lot of unquoted investments which are difficult to value ? |
I’ve doubled my holding today after the latest portfolio update and good progress being made. I feel a lot of the valuation uncertainty is now diminishing and the liquidity position looks relatively robust.
The significant discount to NAV is simply overdone in my view and I can see the share price correcting in the near to mid term. |
That seems like quite a bullish update. Let's hope that their confidence in the stated NAV is not misplaced. |
Given the improved fee structure and steadier portfolio, I made a small bet at 51p recently. |
@archy147 - I think if it was an arms-length transaction, not involving Jupiter at all, I'd still think "What are they playing at? Why invest at a higher valuation? Why not back one of the co's needing cash instead? Why not preserve liquidity in a market where interest rates have risen 40-fold?".
As it is, Jupiter buying off Jupiter using CHRY cash just seems...wrong. |
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