Polar Capital Share Discussion Threads

[diviincomesearch] 13/1/2022 12:14

I think they’re pretty candid about performance fees generally ygor75.

It’s a fairly simple business to understand. Often you’d think there’s some mystery about £000mn market cap firms but there isn’t. You can track the performance clearly in the factsheets. AuM is available monthly with about a 2 week delay.

It’s asset light as a business so inflationary costs aren’t much of an issue. Only things to keep an eye on, are fund performance market trends- generally you get hot money flooding a no.1 fund even when performance has eased.

There’s regulatory costs that affect the bottom line they can’t control. Otherwise the only major thing you won’t be aware of that can affect the business is the bolt on acquisitions. They’re done with existing cash. No debt.

Not much to dislike.

[edmonda] 13/1/2022 10:26

#POLR Good news from Polar Capital with AUM reaching £24.3bn by end Dec 21. Their strong investment performance continued and they remain on track to meet FY AUM expectations. Our fair value of 1400p is double today's share price, and their PE is a 1/3 of competitors.

[riverman77] 13/1/2022 08:58

Last year had very high performance fees as the large US tech indices (where they have a lot of exposure) more than doubled. It was clearly a bit of a one off and wasn't going to be repeated.

[ygor705] 13/1/2022 08:00

Must admit to feeling a bit puzzled about this morning's announcement. AuM figures look healthy but the big reduction in 9 month to 31st Dec 2021 performance fees makes me wonder about full year eps. Very little comment on this figure but it doesn't leave me feeling comfortable given the recent weakness in the share price

[farmers son] 10/1/2022 16:54

a superbly run company, but exposed to its large Tech trust. 730p looks like a very reasonable entry.

[rcturner2] 04/1/2022 13:08

I'm glad I doubled up at 750p.

This is a superbly run company and is not expensively rated currently.

[faz] 24/12/2021 13:10

I have had him filtered for months. JUst a BB narcissist

[diviincomesearch] 24/12/2021 11:01

Please stop spamming that gubbins everywhere buywell. One holding in a single Polar Capital fund has no relevance to the overall company.

[buywell3] 24/12/2021 01:21

IMO POLR would be better selling up the rest of their SNG holdings ASAP

The future could well be our own immunity system at this point







------------ Omicron Vaccine Efficacy ------------

Provisional data is not good



buywell has long believed that vaccines would have to be administered every 4 month

However the efficacy of so doing might decrease further

Which means a new vaccine for Omicron should be underway now

Failure to do this means that children under 5 will suffer together with any other unvaccinated child

Quite how long olde farts will be prepared to keep on getting their sleeves rolled up every 3 months ( shorter period for them ) remains to be seen

This is going to become a major problem in 2022 --- the problem of vaccine burnout

-------------- Is a new Omicron specific vaccine a good thing ? ----------------


Omicron might be as good as it gets for humans -- if so why make an Omicron specific vaccine and risk a new mutation that might be worse ?


Whether we like it or not Omicron is becoming the world dominant strain and luckily for us it is nothing like as bad as Delta was

So should we wait and see what nature has in store for us --- don't interfere --- see what Omicron decides to do

Sounds a good idea to me --- but buwell can't see BIG Pharma seeing it that way so imo we are going to see new Omicron specific vaccines being developed unless the WHO the CDC and Governments say ----- wait

[diviincomesearch] 23/12/2021 19:30

Just had a look at the latest Smart Energy and Smart Mobility AuM.

Already $300mn in Smart Energy and $85mn in the Smart Mobility funds.

That’s quite some start!

[waterloo01] 23/12/2021 15:54

Very nice to have a rise on ex divi day!

[brummy_git] 22/12/2021 11:14

Christopher Mills talks positively about Polar Capital (40:30) here.

www.linkedin.com/feed/update/urn:li:activity:6879354290515841026/

www.youtube.com/watch?v=cG7_82WZdmc&t=2135s

[zho] 20/12/2021 07:04

Five shares to watch in 2022

[zho] 17/12/2021 09:13

Richard Leonard on POLR from 13:17. Reckons the share price should be 900p.

[lomax99] 17/12/2021 08:47

Had a few more, had hoped to pick a few more up a bit cheaper. They go XD on 23/12.

HL has POLR as a share to watch in 2022.

Polar Capital Holdings
An alternative for tech bulls

Polar Capital Holdings is a fund management group listed on the Alternative Investment Market. As of the end of September 2021 the group had £23.4bn of assets under management (AuM) across 30 funds and 3 investment trusts. That puts it at the smaller end of the market.

Normally we’d say asset management is an industry where size really matters. However, Polar Capital has healthy operating profit margins of around 35% because of its focus on “thematic investing”. Its funds are specialists, looking to capitalise on broad trends within the wider economy and are able to charge higher fees.

The group has particular expertise in Technology and Healthcare, which account for 49% and 14% of AuM respectively. That has served it well in recent years. Not only has tech as a sector performed well, but Polar’s funds have also outperformed.

We see Polar Capital as a way to participate in the tech boom, while reducing some of the stock-specific risks. On the other hand, investing in asset managers rather than the funds themselves is a leveraged play on asset price growth.

Rising interest in technology funds coupled with rising share prices does wonders for AuM. Fees are charged as a percentage of AuM and fixed administrative costs mean revenue growth feeds quickly through to higher profits. Cash conversion is strong and a large proportion of this is paid back out to shareholders with a dividend yield of 5.4% - although remember that this isn’t guaranteed.

There are risks to this approach though. The virtuous circle of rising share prices and increasing inflows can quickly reverse. Polar’s heavy reliance on the technology sector means a change of sentiment or rising interest rates would be very painful.

To mitigate this risk, management’s been snapping up smaller boutique investment managers with expertise in other areas like value investing. Meanwhile a sizeable proportion of the group’s cost is made up of performance related pay for fund managers – providing flexibility in bad times. Nonetheless a chill in the tech sector and prolonged underperformance are both real risks and shouldn’t be underestimated.

As things stand, we think the group should be able to support meaningful shareholder returns, and over the longer term we believe expertise in technology is a real strength.

[rcturner2] 16/12/2021 08:26

I've doubled up on Polar today with another 4000 shares.

[lomax99] 15/12/2021 15:44

Getting closer to top-up time for me.

[diviincomesearch] 26/11/2021 08:11

So, solid results. More consolidation in the sector happening with R&M in a bidding war seemingly. The result being… the stock price is down.

Never can tell.

[edmonda] 22/11/2021 12:49

We knew momentum was strong on an absolute basis in H1 22 with AUM reaching £23.4bn on 30 Sep 21, 12% up over H1 (31 Mar 21: £20.9bn) and 43% up y-o-y (30 Sep 20: £16.4bn). Now, with most asset managers and platforms having reported AUM for the July-Sept quarter, growth looks impressive compared to peers too. Polar had the 4th highest organic AUM growth (out of 15) in the 6 months to 30 Sep, and the 3rd highest over 12 months. Growth has continued in H2 with AUM reaching £25.0bn on 12 Nov.

We increase our fundamental value from 1305p to 1400p, 70% above the current share price. We had previously forecast AUM of £23.4bn on 31 Mar 22, but it is already £25.0bn. If we assume no growth from market movements or investment performance for the remainder of the FY, with net inflows continuing at the average of H1 (just over £100m per month), our revised estimate is £25.5bn.

We also note the continuing discount in valuation compared to peers. Polar’s PE ratio of 12.2 is less than half of the peer group median of 30.0, which seems strange given its growth and profitability profile. We maintain that there are sound reasons for a significant change in rating.

[diviincomesearch] 22/11/2021 08:12

Steadily pushing in the right direction.

No major surprises in the results- has the Robeco team acquisition been allocated into H1 results for salaries etc.

Solid dividend yield with a nice bump, loads of cash still. Not much to dislike.

Last time I thought results seemed fairly unsurprising and the share price shot up past 900p. What will happen today?

[waterloo01] 22/11/2021 07:09

Excellent results

[rcturner2] 22/11/2021 07:07

Superb results today.

[diviincomesearch] 15/11/2021 12:57

Latest factsheets are all pretty steady. Asian and EM stars with decent inflows but everything else pretty static.

The new ex Robeco team will need to drive the majority of inflows I’d expect.

Still looks reasonable value, but no big immediate drivers to push the P/E wildly.

Again performance fees continue to look pretty minimal, so just going to be core earning pushing things along.