Hg Capital Share Discussion Threads

[dickiehh] 05/9/2023 12:44

I agree - anyone else surprised to see such a muted share price reaction to this news?

[robsy2] 05/9/2023 07:16

NAV now 475p after another disposal way over the carrying value.This looks good value.

[skyship] 22/8/2023 09:58

Not a lot. Sector out of favour yet these still trade on just a 21% discount v. 35%-40% elsewhere.

[dickiehhh] 21/8/2023 22:28

What's going on here?

[robsy2] 15/5/2023 06:24

Excellent update.

London, 15 May 2023: HgCapital Trust plc ('HGT'), today announces its Q1 results for the period ended 31 March 2023 .

Highlights over the period include:

! Strong portfolio trading continued to be the main driver of performance, contributing to a total return NAV increase of 4.0%, closing the period at 470.6p NAV per share and net assets of GBP2.2 billion

! Share price total return of -0.9% over the period, closing at 343.0p per share and a market capitalisation of GBP1.6 billion

! Revenue and EBITDA growth of 30% and 27% respectively across the top 20 investments (77% of the portfolio) over the last twelve months.

[topvest] 15/3/2023 09:47

Yes, great record here. I was a bit mystified by the portfolio EV to EBITDA multiple of 27x and net debt to EBITDA of 8x. Relx are on 18x, Experian on 18x and Sage 17x. Doesn't this just show that private valuations are significantly higher than public valuations. I don't understand this discrepancy, but it clearly justifies a discount. I still hold.

[rambutan2] 14/3/2023 03:33

Finals out. Certainly a highly valued portfolio, but plugged into a high performance investment platform.

[...]

[rambutan2] 14/11/2022 15:18

3rd quarter nav up 2.3% to 450p:

"During the period, the value of the unrealised investments increased by £90.6 million, before the provision for carried interest.

The majority of the increase, £231.4 million, is driven by profit growth in the underlying investments. A lowering in valuation multiples decreased the value of investments by £147.4 million. £47.4 million of favourable currency movements contributed positively to the value of the portfolio. An increase in net debt of £48.4 million led to a decrease in the unrealised return.

Acquisitions less realisations at carrying value were a net £172.7 million, increasing the value of the portfolio."

[robsy2] 20/9/2022 08:17

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 14:32

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

[skyship] 14/9/2022 13:05

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 08:14

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 08:11

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 07:46

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

[mrnumpty] 11/8/2022 07:34

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 07:29

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 15:40

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

[grahamg8] 14/6/2022 06:33

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 18:12

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 06:21

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 06:21

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.