Strategic Equity Capital Share Discussion Threads

[mad foetus] 07/2/2017 20:57

The plot thickens. Sir Clive Thompson, one of the directors of SEC, also owns over £4m in SEC shares and sits on an advisory board of GVQ. GVQ can be given 12 months notice at any time, but there is nothing about key persons mentioned in the reports.However, the board of SEC are top notch (it is the best board I've ever seen on an IT) and Clive T and Lord Rothschild have a lot of skin in the game. I am interested to see how this plays out.

[luckymouse] 07/2/2017 20:22

SW & LR prob had lunch in Mayfair a few months back

[mad foetus] 07/2/2017 19:53

I read it that GVQ had told the board who the replacement was. Of course, confusing matters further, Lord Rothschild (of RIT capital fame) liked SW so much that he bought GVQ and held 17% of SEC when I last looked. What will he now want? I am surprised they let SW leave to be honest.

[spectoacc] 07/2/2017 17:05

@MF - not denying for a moment that manager changes happen - look at BIST.

But Board deciding to appoint Stuart's new co?

This doesn't make it sound like they'll be moving - though of course, when performance drops, they'll look elsewhere:

"Jeff Harris of GVQIM, who has worked with Stuart since 2014, will assume
responsibility for the portfolio management of the Company. "

[luckymouse] 07/2/2017 16:38

Confirmed IHS - but I would need to see that money flow bounce first

[luckymouse] 07/2/2017 16:22

Good spot MF

I'll do it if you like :)

only aim - only 50-100% ups - only at start of that life cycle - only materially aheads - only tiny free float - no one off deals - no scams

If nothing else - it would be very exciting - although it might make your hair fall out lol :D

[spectoacc] 07/2/2017 16:10

Like the theory, but have never seen that happen before and they've already said they have confidence in "junior". Presumably if such a thing had been on the table, Stuart would never have left.

No harm in trying tho!

(IMO if they bought back the shares, it'd be somewhere between current share price & NAV - would still be accretive).

[mad foetus] 07/2/2017 16:01

None of the board are employees of GVQ, they all look independent to me. The obvious thing to do will be to transfer the management to Harwood imo. I may drop them an email to suggest this, just so they know what PIs are thinking.

[mad foetus] 07/2/2017 15:54

It would have to be at the current SP, no other way.Another intriguing prospect is that the board of directors owe a duty to the shareholders. It would be close to negligent if there wasn't an agreement with GVQ that names Widdowson as a key person and gives SEC the right to terminate GVQs appointment if he leaves. That would be industry standard.It may be the simplest thing to simply waive his gardening leave, let him set up at Harwood and appoint Harwood to manage this fund.Also bear in mind that SWs investment approach is based on PE principles: chances are any new fund is going to have a lot of overlap with SEC anyway.

[spectoacc] 07/2/2017 14:26

Good spot @mf. Your buyback suggestion would be sensible (though I wonder at what discount to NAV...).

[mad foetus] 07/2/2017 14:23

And the answer: he is setting up a new small cap fund with Armitage. I wonder whether SEC will buy their stakes in SEC off them and cancel the shares? Would make sense given SEC have cash and these guys presumably want to seed their new fund.

hxxps://www.ftadviser.com/investment-trusts/2017/02/07/top-performing-uk-small-cap-manager-exits-gvq/

[bottomfisher] 07/2/2017 13:58

Love to know where Stuart Widdowson is going to reemerge. He was a star fund manager at HG Capital, one of the best private equity investment trusts, before he took the reins at SEC. Interestingly, Ian Armitage, HG Capital's chief executive and Widdowson's former boss, became an increasingly important investor in Strategic Equity after he retired from HG Capital.Over the years Armitage has been reducing his sizeable stake in HG Capital and increasing his shareholding in SEC which is now just under 5% and worth around £10m.

[spectoacc] 07/2/2017 13:51

Reasons above I'd say - the successful manager has gone, abruptly, with no reason given, and presumably has 625k shares to offload. His deputy is taking over and looks very green.

You can argue the investments are still good, but c10% cash will need redeploying from takeover of E2V, & they're already c.14% in cash.

I'd love to know the reason for him leaving. Assuming he rapidly turns up elsewhere, that's where SEC money will probably head. Then it might well be a buy!

But good luck all the same - no holding here.

[lozzer69] 07/2/2017 13:44

With a NAV currently at 232 and the share price at 205 I am hoping the shares will not go much lower. Thats a big discount and investments are still good so I see no reason to bail out at the moment.

[spectoacc] 07/2/2017 08:28

A very abrupt RNS. Also note that:

"Stuart and his immediate family own 625,100 shares in Strategic Equity Capital."

Other problem is that although I'm sure Jeff Harris is highly competent & ready to pick up the baton from Stuart, from the photo on the website I'm not convinced he's started shaving yet. (ie - he's a bit green).

[mad foetus] 07/2/2017 08:24

GVQ do manage a couple of other funds and they are both good performers. So it's not a one man band, and the discount going out to 15% is a bit rich for the track record here. But it is disappointing.

[mad foetus] 07/2/2017 08:09

Disappointing that Widdowson is leaving and the market has responded. It will be interesting to see whether steps are taken to manage the discount now.

[mad foetus] 21/12/2016 10:31

I bought more today. My tip for next year

[mad foetus] 21/12/2016 08:26

Good news at SERV today, which SEC topped up in recently. I think 2017 will be a good year here.

[bigwilly1986] 12/12/2016 18:20

I suppose it rather depends whether they can find a good use for the proceeds!

[mad foetus] 12/12/2016 11:53

At last count, SEC had 8.1% of its assets in E2V, and the so if E2V at that time was around 180p. Let's say that equates to roughly 16p of NAV. The bid today adds around 8p to SECs NAV, and also vindicates the SEC board investment process. With the share price only up 4p ATM, I would say now is a good entry point.

[mad foetus] 29/9/2016 08:59

Thanks bamboo much appreciated. I'm going to study charting soon, just need the time!

[bamboo2] 27/9/2016 21:44

Hi mf, yes it is making a small bowl at the moment. The dip in the summer makes it quite difficult to chart, using patterns that are familiar to me.

The obvious first target is the recent high at around 209. An eod close above this targets 216/17, look again if and when it hits each target to see if the chart has a clearer pattern.

The 50sma crossing the 200sma is a positive, although for it to be called a Golden Cross, both should be rising.