Hg Capital Share Discussion Threads

[robsy2] 20/9/2022 09:17

The Edison analysis, HGT's stunning track record , high discount and their investment positioning are compelling so I've added a few more this morning.

[makinbuks] 14/9/2022 15:32

That's because HGT is not a typical PE fund so much as a large software conglomerate

[skyship] 14/9/2022 14:05

Bit of a fall here today - Dn c4% @ 385p. Further weakness likely however as they are surely rather over-valued versus all peers. A 14% discount v. 42% at APEO; 46% at HVPE; 44% at PIN......etcetcetc

[macc1] 14/9/2022 09:14

here's an update video following results. I'm posting this a bit late, but it might be useful to some:

[mrnumpty] 11/8/2022 09:11

Robsy2 . Thanks for that , although humility compels me to acknowledge that not all of my trades are as wise ! Today’s initial price rise , at 9.05 am , has unsurprisingly cooled off a little and , just as when individual shares are tipped , it could be prudent to wait a while for the effects of the Telegraph tip to wear off before buying in . Good luck all

[robsy2] 11/8/2022 08:46

Thanks for that numpty and congratulations on your well timed purchase.

[mrnumpty] 11/8/2022 08:34

Incidentally , the Telegraph article , which is primarily devoted to HG , is titled “ This excellent trust was at par value four months ago . Now it’s discount is 17% [ at £ 3.89 ] . Buy “ . The Telegraph article also lists other Investment Trusts trading at a discount , which it also considers worth buying .

[mrnumpty] 11/8/2022 08:29

The obvious reason for HG being up 4.5% and over £ 4.00 in the first twenty minutes of today’s trading is that it has been tipped as a “ buy “ ( at £ 3.89 ) in the Questor section on today’s Telegraph ( page 23 ) . The article points to recent profitable sales of some investments by HG and states that “ if anything , its valuations are on
the conservative side “ . JP Morgan Cazenove estimates HG’s NAV at £ 4.68.8 compared with the official March figure of £ 4.33.1 . The Telegraph also mentions HG’s “ exceptional returns if 427% over the past decade . Fortunately I recently felt that the unprecedentedly deep discount was probably a result of investors taking fright at being invested in unquoted companies , whose valuations are only estimated every three months , so I bought back in . Happy news in a world of gloom !

[steve c1] 01/7/2022 16:40

Well this one's taking a bit of a pasting. Big discount now.

[grahamg8] 14/6/2022 07:33

What a terrible RNS. When I read the header (repeated in the text) I thought HGT would be awash with cash. Oh no no no what they have done is sell their shares in Medifox for £47.3m. That is not $1bn.

Good sale, bad RNS

[makinbuks] 08/6/2022 19:12

And Pro Forma NAV of £4.52. This is the widest discount I can remember seeing in HGT. Sector has bombed

[robsy2] 08/6/2022 07:21

Good news.
This transaction values HGT's existing investments in The Access Group at GBP441.1 million. This would represent an uplift of GBP104.7 million (31%) or 22.9 pence per share over the carrying value of GBP336.4 million in the Net Asset Value ("NAV") of HGT at 31 March 2022.

[robsy2] 08/6/2022 07:21

Good news.
This transaction values HGT's existing investments in The Access Group at GBP441.1 million. This would represent an uplift of GBP104.7 million (31%) or 22.9 pence per share over the carrying value of GBP336.4 million in the Net Asset Value ("NAV") of HGT at 31 March 2022.

[macc1] 07/3/2022 12:35

Hi all, here's a video update from HGT for this mornings results:

[macc1] 16/11/2021 10:27

Here's quite a nice video which explains HG Capital Trusts investment approach:

[makinbuks] 05/11/2021 16:54

Well a fund will look to have a life of at least 5 years and wind up around ten. A trust investing in funds looks to maintain exposure through reinvesting money returned from maturing funds. I agree there is an element of rollover by managers from vintage to immature funds under certain circumstances and indeed trade between managers. My point is, the mature fund holds the investee at £100, the new fund offers to buy it at £120. HGT owns both funds. Has the value of its investment really increased? The EBITA and market multiple are not changed so why is the NAV marked up?

To be clear I am a holder here and very pleased with performance. I just wee this as a concern not a sufficient issue to sell

[tykethat] 05/11/2021 16:44

From my understanding PE funds including HG are not looking to sell out completely on successful holdings, preferring to benefit from longer term relationships.

[makinbuks] 05/11/2021 16:29

They do, I agree. It just seems quite a while since we saw a clean cash exit demonstrating the valuation ascribed by the manager

[tykethat] 05/11/2021 15:56

Surely the team at HG deserve some trust from holders?

[makinbuks] 05/11/2021 09:06

Surely you have to question an increase in the value of an investment simply because you have pumped more money in, together with your associates. There is no independent objective process behind that valuation. Taken with a number of other transactions where they have sold from one fund to another this is a little worrying

[grahamg8] 05/11/2021 07:21

Well my calculation says the Litera investment only provides 3.0p immediate uplift. But wtf HGT seem to be on a winner.

[1318myl] 07/10/2021 14:59

Is there any news to cause the drop today

[jaws6] 29/9/2021 12:36

NEW VIDEO, Good talk

[grahamg8] 28/9/2021 17:28

Took the plunge today. I usually shy away from unquoted companies held indirectly because the valuations are pretty much guesswork. HGT passed the test because they have a long track record of delivering value, and that can't be achieved by inflating valuations. A quick check of their 38 holdings at 30/6 suggests that the investments are realised in under 5 years. Indeed the only one bought before 2016 was Achilles which has now sold. Portfolio book value increased by over 70% from investment amount. Recent disposals above book eg Miratech +50%, Traceone +33%, Eidosmedia +45%, Allocate +48%. Happy days.

[macc1] 06/9/2021 18:45

Here's a video for this mornings results: