Rit Capital Partners Share Discussion Threads

[hectorp] 01/2/2005 17:40

i hold Scottish Val in my Sipp. Up around 16% since I bought.
I have enough exposure to sm cos -
might buy a few Schroder small and medium cos though.

[stillbroke] 01/2/2005 17:17

I've held RIT , Scottish Value (now SVM global fund) and British Empire in my ISA for years, and am very pleased with all. Also hold, bought in last 12/12, Aberforth Smaller Companies IT (ASL) and SVM Active IT (SVU).

[hectorp] 01/2/2005 17:04

I came in here today because of that press story on the 18th. I'll leave the RIT investment for the moment.
I'm gonna have a look at your several Funds , rambutan.
This thread is as I'd expect, good quality.

[paulismyname] 28/1/2005 21:26

Yet more falls I am afraid, are now close to the last NAV back in December.

Initial reason for the fall is that Cazenov apparently derated them from their model portfolio, worth noting that they are this companies broker too.

Standing aside at the moment, dyor of course

[paulismyname] 21/1/2005 17:53

Thanks rambutan2, would also add to your list fsv (Anthony Boulton of Fidelity runs it)

Nasty drop today, as it happens I was fortunate to sell yesterday because I did not like US indices all below 50 day MA.

Apart from the usual (people selling) does anyone know the reason why for today's sharp fall. Not normal for a Rothschild to be caught on the hop, today's fall means on the face of it Jacob is nearly £8 million poorer

[bangor] 18/1/2005 13:37

Much obliged, that gives me plenty to research. I'm so overweight on commodities I need to be sensible and diversify.

[rambutan2] 18/1/2005 11:44

similar boutique-style investment trusts at the mo mostly trade on a premium or near premium, but take a look at svg, epg, et., lti, nsi, iim, han and rica. all absolute-style with variations on the rit theme.

[davidbh] 15/12/2004 22:05

BUT:
Now it trades on -11% !
What to think ?
Either , it's overreached itself (=overbought as a result of the sudden price increase since August 04)
Or,...I can't complete without sheer speculation - tips in share mags ? or in weekend FT(see FT article by Phillip Coggan: "The Long View"- approx Sept 20 2004).

Any other suggestions ?

[richard xi] 20/4/2004 10:33

RIT has reached an all-time high of over £6 for the first time today. The share price topped £5 for the first time on 18th November.

The company has continued to out-perform the indices for several years and now trades at only a small discount to net assets.

[richard xi] 20/2/2004 07:43

RIT has sold one-third of its holding in Shinsei, keeping the rest.



Punters celebrate Shinsei rebirth
Jake Lloyd-Smith in Singapore, Evening Standard

19 February 2004

HE long-awaited debut of Japan's Shinsei Bank - the country's first foreign-owned lender - seized the limelight today as investors clamoured for a slice of the action.

The shares of the former failed Long-Term Credit Bank (LTCB) were priced at 525 yen, but attracted an avalanche of bids at 822 yen, a 57% premium. They remained untraded as there was insufficient seller interest at that level for transactions to be completed.


Shinsei - which means Rebirth - was sold by the State in 2000 to a consortium led by US investment fund Ripplewood Holdings, the same group that last year snapped up the Japanese fixed-line assets put on the block by Vodafone.


The listing of 35% of Shinsei's equity raised £1.24bn in the Tokyo market's biggest fundraising exercise in five years. It was undoubtedly a coup for Ripplewood. The fund bought LTCB/Shinsei just four years ago for the equivalent of about £529m.


At today's bid price*, the revamped bank is worth nine times that figure.


There are two different versions of the Shinsei story - and parts of both of them are true. The one recounted more often has Ripplewood bravely treading where others feared to go and insisting that conventional Western banking practices could be made to work in Japan's relationshipbased, stuttering economy. Outsiders were brought in, risk-assessment processes tightened up, and billions of yen in bad loans were cleaned up. It is estimated that Shinsei's bad-loan ratio is now a respectable 4%.


The gamble excites attention as it is held up as a possible model for a more widespread reform of Japanese companies, especially those in the remainder of its badloanplagued financial sector.


But behind that cosy tale, there lies a more complex, second story centred on the staggering cost of Shinsei's revival from bankruptcy.


Before Ripplewood bought LTCB, the Japanese state had pumped at least four trillion yen (£20bn)into the lender to make it fit for sale. And even after the deal went through, the State offered a continued lifeline, scooping up more bad loans. Opposition politicians have estimated the entire rescue might have cost taxpayers 8.2 trillion yen.


'It's clear a huge amount of money was used,î an opposition Democratic Party spokesman said last month. 'And it's obvious the clean-up method used for these banks had problems because there have been no similar schemes since.' There is a tempting parallel with the forthcoming listing of Chinese State-linked banks.


Although they are not foreignowned, investors and investment bankers suggest that China Construction Bank and Bank of China could raise up to £3bn when they list this year or next. But that will be a fraction of the sum Beijing spends getting them ready for sale.

[elmfield] 18/2/2004 08:09

over the years rit has been a good preformer and worth tucking away in any portfolio they have shown a good track record in good and bad times.

[rambutan2] 16/2/2004 11:55

no, so...

09 February 2004
RITCP's largest unquoted holding is its investment in Shinsei Bank, which today
announced its initial public offering on the Tokyo Stock Exchange at a price per share of Y525. Trading in these shares will begin on 19 February.

RITCP's 1.93% holding in the fully-diluted equity of Shinsei Bank is valued at
£77.4 million at the IPO price of Y525. This compares with its original cost of
£20.8 million in March 2000 and its carrying value of £32.5 million as at 31
January 2004.

The valuation of £77.4 million has been calculated after taking account of the
carried interest payable to Ripplewood Holdings LLC, whose international
consortium of investors acquired Shinsei Bank from the Japanese government in
March 2000. Approximately one third of the shareholding attributable to RITCP is being sold as part of the IPO. In view of the ongoing restrictions affecting
RITCP's residual holding, we have applied a 10% discount to that holding.

This represents an uplift in RITCP's net asset value of 28.6p per share.

well, the mkt has priced in an estimate, as the share price rise to a near premium shows. however, as says above, shinsie dont start trading until 19th so nothing definite until then. will have to wait on rit themselves to issue their next official nav fig.

[richard xi] 16/2/2004 11:14

rambutan

I do not think any accurate NAVs have been published recently. The FT numbers presumably do not include the Shinsei uplift.

[rambutan2] 15/2/2004 23:56

hi tuffbet, sounds as though you a follower of its – there arent many of us.
ive had much joy from various classes of split capital shares over the the last year or two (the jdt thread is the main splits one). however, i follow the whole sector quite closely.

although usually trading on a premium (and i can never make myself buy at a premium) capital gearing has a superb long-term record and is the only trust to have gone up every year for over a decade. have a look at its chart.

for a pan euro play, sr european is a favourite of mine (via its warrants). its run by hedge fund managers sloan robinson and has done v well recently.

two specialist trusts with v good outperformance of benchmark records are tr property (try) and merrill lynch world mining (mly). both could be no brainers for this year. the former benefiting as the prop sector builds up to reits, while the latter rides on the coat tails of the bull mkt in metals.

regards rambutan

[tuffbet] 15/2/2004 23:38

rambutan2

Agree with what you say about Scottish Value the trust has changed as the markets have changed and the management team deserve a big pat on the back for that - too many take the management fe and fail to act as the cycles change .
I think all three ie RIT , Scottish Value and British Empire are all more active than most with regard to asset allocation and I don't regard any of them as straight equity funds

[bedsidemanner] 13/2/2004 22:58

Thanks for the 'tips' will do some reading. Hope I don't regret selling RIT. May sound hypocritical but my wife still has a holding, ahe has made a nice 37% in 9 months !
Best wishes and happy investing.

[richard xi] 12/2/2004 14:57

Above 550p for the first time today!

[rambutan2] 10/2/2004 00:41

scottish value trust also has similarities to rit and brit emp, and as its got more and more into hedge funds so it has improved. i like its asset mix.

however, the great advantage rit has is the rothschild contacts book, being as it is effectively the pension fund of that part of the family. the way it divides up its equities port in a multi manager type method, but with top managers running the indv parts, is a bit of a one off. likewise, the ability to get into hedge funds that are closed to mere mortals. really, it should never trade at a discount.

[tuffbet] 09/2/2004 23:40

bedsidemanner

I wouldn't argue with what you say but this is a shrewd management team so I am confident they will beat off the legal attack - as you know in America there is a constant threat of legal action but the success ratio is not high - I did hear though a few months ago about someone who sued himself and won which did shake me a bit.

British Empire is a company of the same qualty as RIT and John Walton has done an excellent job over the years - I don't hold the shares at the moment so I have lost touch a bit - am I right in saying that he no longer has sole responsibility for managing the company - if I am then I would be careful because that usually means he will be slipping quietly out at some stage - have a look at Andy Brough's Schroder Mid Cap Fund he is a very shrewd and experienced manager although his trust is probably always going to be 100 % equities

[bedsidemanner] 09/2/2004 22:59

In many ways I agree. I held a large holding until recent weeks but the threat of litigation in the American courts later this year ( see back of last published accounts) concerns me. My self and a colleague had a chat with RIT management and though they seem bullish I have decided to sit it out and add to my holdings in British Empire Securities. I will certainly get back on board once this uncertainty is over. If they loose the costs to the trust will be significant compared to overall value of the trust.

[tuffbet] 09/2/2004 17:13

This has to be one of the best collectives in the market.

Not content with taking up a defensive position prior to the equity market shakeout which started in early 2000 the management team have consistently added value with stock selection.

Todays announcement that its 1.95% holding in Shinsei Bank will go for an IPO in February valuing at around £80 million is typical of their almost unique approach to managing a quoted Investment Trust - after all Investment Trusts are meant to be boring are they not ?

As per the RNS announcement the IPO will value Shinsei at around £80 - not bad given RIT's initial investment of around £20 million .

Prior to todays announcement I didn't think the market had quite given the trust a rating which reflected the quality of the management .Despite the NAV uplift of 28.6p and the fact that todays general market trend is bullish RIT 's shares have so far only made a modest rise which tells me that this remains an undervalued gem .

Worth climbing aboard ? - I think so but do your own research - www.trustnet.co.uk is not a bad place to start