Hargreaves Lansdown Share Discussion Threads

[lomax99] 10/6/2024 05:36

Some excerts:The Lindsell Train fund manager says he was not surprised by the bid approach the investment broker received last month given the 'exceptionally low' valuation of its shares.Train, who runs £3.5bn Lindsell Train UK Equity fund and £1.5bn Finsbury Growth & Income (FGT) investment trust, said he would be watching the situation 'with interest' but did not set out any fundamental opposition to a sale. 'Its prior stock market valuation had seemed exceptionally low. But many UK-listed asset and private wealth management franchises seem exceptionally lowly valued too.'Ben Needham, Ninety One portfolio manager and another investor in what he called the 'woefully undervalued' business, said it was a wake-up call for UK-listed companies. UK Buffettology fund manager Keith Ashworth-Lord decried the bid as 'opportunistic in the extreme', coming at a time when the fortunes of the Citywire A-rated Elite company could be turning.

[growthpotential] 09/6/2024 22:35

Cheers, what's the jist of the article? Can't view all of it...

[lomax99] 09/6/2024 08:57

Nick Train breaks silence on Hargreaves LansdownHttps://citywire.com/investment-trust-insider/news/nick-train-breaks-silence-on-hargreaves-lansdown/a2443999?re=121097&refea=1746813&link_id=1641344

[ochs] 04/6/2024 17:24

Agree @eigthwonder - plus another Investment Director called Lee Guardhouse was far too pally with Woodford. He only recently 'retired' from HL and never got as much flack as Dampier, but probably should have!

[eigthwonder] 04/6/2024 17:15

But the man tasked with challenging NW was Mark Dampier who was the biggest drum beater of them all (and beater of other dubious drums too). More should be made of MD's role in the whole affair.

[lomax99] 04/6/2024 17:10

They challenged him, he lied.

[growthpotential] 04/6/2024 16:32

I need 1468 to breakeven, sad I know. But seriously, this is worth way into the 2,000s

[ochs] 04/6/2024 16:12

Then again you could argue that in PH's time Woodford was still a good manager. It was only in the last 2 or 3 years where HL failed to challenge him enough and were not then brave enough to take action and remove his funds from the W150.

[lomax99] 04/6/2024 12:48

PH kicking off again about former management.



Conveniently no mention however of the W fiasco, the seeds of which pre-dated Chris Hill (but not PH).

[stoopid] 04/6/2024 09:28

This is just going to drift down to the offer price unless there is significant movement on the initial offering.12 days left for the consortium to make that higher offer. Hopefully one around 1400 per share but I can see another low ball bid about 1220 ish.....

[mayers] 31/5/2024 22:42

Thank you Ochs. That's very reassuring and it's kind of you to get back about it.

[ochs] 31/5/2024 21:32

If the takeover goes through nothing will change with your ISA at all - the only thing changing would be the ultimate ownership of HL, but you won't need to take any action, as your investments and your ISA will still be an ISA with HL and protected by the usual UK ISA rules... so absolutely nothing to worry about in the situation you've described and no action needed.

[mayers] 31/5/2024 20:42

Thanks Adam and Ochs
I may be suffering a misunderstanding but I do not own HL shares themselves,as opposed to a portfolio for which they provide an ISA wrapper, and cannot quite see how I will benefit from the PE fund's buying the shares at the premium. If the ISA is preserved as a sale of the portfolio then I would want mainly to repurchase that share selection. I would not want to buy just a single company's shares. Am I missing something? I hope the issue is formally clarified.

[adamb1978] 31/5/2024 18:41

Not sure how you work that out Mayers.

You 'win' in that the PE fund will be buying the company you own at a premium to the market price. Its possible that you might think that the company could have gone higher than that, but it will almost always be at a premium to the market price.

When you say "if you need to rebuy most if not all the holdings you had chosen before"...its not clear what you mean. If you mean using the proceeds from the buy-out to re-invest in the various other things which you own, then yes, you'll incur trading charges for buying those, but it'll probably cost you less than you gain from the take-out.

Most people thoug would invest the proceeds in another company, rather than distribute across all others in their portfolio. Or perhaps reinvest the proceeds in their best idea. WOuld be a little unusual to invest the proceeds in 'most if not all' the other holdings

Adam

[mayers] 31/5/2024 18:35

Thanks. It sounds as if you lose in the short term at least, if you need to rebuy most if not all the holdings you had chosen before. Hmmh.

[ochs] 31/5/2024 17:51

In other words you end up with cash held inside your ISA wrapper - which you can then reinvest in other shares or funds of your choosing - whilst retaining it all within the ISA wrapper.

[adamb1978] 31/5/2024 17:43

Mayers

Not many complications - PE fund acquire the target and then the cash value of the offer (will almost always be a cash offer if its a PE deal) would be deposited in your ISA when the shares are acquired.

Adam

[mayers] 31/5/2024 16:19

I wonder if an informed contributor would direct me to an authoritative source detailing the status of investments held in an ISA wrapper in the event of a listed company's being taken over by Private Equity. I am led to understand that the ISA status is not affected but would be grateful for informed chapter and verse.
I apologise if this has been dealt with before. Many thanks.

[robinnicolson] 31/5/2024 11:42

ShareScope article by Phil Oakley:

[robinnicolson] 30/5/2024 13:13

HL. back in the FTSE 100 on May 31.

[robinnicolson] 30/5/2024 12:24

The Times yesterday:

"Panmure Gordon reckons 'the company is worth 15 pounds' a share, with any bidder also needing to pay a premium on top".

The paper also doubts whether Lindsell Train would "cash out at what's historically both a low price and rating: an earnings multiple of about 16 times...as bids go, the wannabe owners are still a fair way from making a proper 'buy' case".

[eigthwonder] 30/5/2024 10:42

It’s easy to move holdings in all the accounts (apart from the Active Savings) to another platform. HL have done me a good job over the years and I was happy to invest at a good price (in the 700s) in a classic case of backing those things which serve me well. But if the BoD sell out at these prices to a juiced up PE buyer I might just vote with my feet.