Very welcome share price rise at the end of the year, narrowing the discount again significantly. The investment policy really taking shape now and an interesting year ahead. Some good detail in the annual report announcement
Replacing the debentures with a smaller RCF simplifies the structure and helps marketability. Getting that charges % down is also important and recent legislative/regulatory change will help there. |
Liontrust announced this morning a further 4% drop in AUM. Of no relevance now to performance here but we should never lose sight of what a dog of a deal Barlow did there |
Well theoretically it would make sense for an endowment fund with infrequent genuine NAV updates if the manager establishes a reputation for delivering. Clearly what the manager want to achieve to allow the fund to grow through share issues. |
Can we dream it gets to a premium rating? |
I'm actually pinching myself here. Is the price really £2.40 XD!! I'm a natural worrier so I'm now thinking about how robust the NAV is and whether we can trust the valuation of these SPV's. Time will tell and I will be around one way or another |
Fingers crossed! |
What a pleasure it is to hold this now after so many frustrating years. Narrowing discount and now a significant rise in NAV. Hopefully the manager is also making progress towards the structure he wants as we near the first anniversary of his stewardship |
A good read! So far so good I would say. Pretty astonishing reduction in the discount 10.46% today they say. That's despite a negative NAV through Q3 |
The Q3 report is out - more detail on 'specials' |
Since my post on 30th June the discount has almost halved to 12%. NAV has actually reduced by 3p. Someone likes them! That's a very impressive record in a period when discounts have been widening to an unprecedented degree. The question is, is it justified? Nothing to suggest so in the September fact sheet. About the most interesting thing I thought was they were 9% cash. Presumably we will get an update in November |
Possibly some value here, although there are other broadly similar trusts on even wider discounts but with an established track record, such as CLDN to give just one example. |
HL now estimates the discount at 26.63% |
Looking very unloved again at a 23% discount. Very difficult to judge without any track record but if the new manager- is successful this may prove a low |
The actual spread is way better than what advfn are showing. It's currently 192p - 192.84p. That's too attractive to ignore and I'm back in. |
Discount seems to be widening again riverman. c.20%.
Another question is how they are going to stimulate demand for the shares. The spread is wide |
I'm not sure about the new manager really. It seems a bit similar to the Majedie approach which had various sub-funds. Here we get special investments, third party managers and direct investments. Seems a bit too eclectic for my liking, but willing to give them the benefit of the doubt for now. Not sure why they do 10-20% in direct investments. If they were any good at it, then that would be higher. |
I hope the new strategy does well, but not really a fan of fund of funds because of the double layer of fees. Discount also no longer wide enough to Interest me - lots of other good trusts on much wider discounts. Will keep an eye on it though as potentially interesting. |
This looks even more eclectic now. Anyone know what the special investments are (e.g. Project Bungalow!)? I see William Barlow has been knighted - well done! Anyone know why? |
Steve, have you watched the managers video (see my post 306 above) It gives some more detail on what is meant by annuity style investments and examples. They have to be somewhat coy for commercial reasons so an element of trust is necessary. |
Just looked at the March factsheet.
48% is invested in external funds.
Direct equities are 20% which is in the normal range for a fund of funds.
Another 6% is committed to 'Special Investments'.
They are given strange names like 'Project Bungalow'.
What are these investments? Who knows, certainly not me.
Experts say if you don't understand an investment don't invest and at the moment I don't understand Majedie.
I'll have another look when the annual report is published. |
Liontrust shares off 5% today, were £12.50 a year ago and under £9 today.
I have great hopes for the current strategy and fully understand that the ownwer managers at Majedie needed an exit. But you can't escape the fact that Barlow, having done brilliantly to identify and back the Majedie team in the first place, completely mismanaged it in the last five years. The timing of the sale to LT and the price were the final act of that mismanagement |
This is a bit galling from the Liontrust announcement this morning:
"It is a year since we acquired Majedie Asset Management with a final purchase price of £41 million2. Over the financial year, the investment team who joined from Majedie generated performance fees of £12 million, out of a total of at least £17 million for Liontrust as a whole." |
Living up to your name then Steve! I wont be looking for too much from the March factsheet. I agree with you, we have effectively just IPO'd and the track record now needs to be established. I'm encouraged that the manager has bent over backwards to make it a good deal for holder |
February factsheet says the transition of the portfolio is almost complete so the March factsheet will give us the real portfolio to assess. Discount is currently 14% which is about right for a fund of funds (the percentage of direct equities is higher than usual though), it will take a few years of good performance to get the share price up to NAV and unless the discount widens a little I won't be buying yet. |
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