Tetragon Financial Share Discussion Threads

[riskvsreward] 11/2/2021 08:18

Here is the questions I have sent to the company IR and request management answers at the company AGM. Hope other PIs in this company ask their questions as well.

1. The company has apparently done well in 2020 according to the company announcement and presentation, growing NAV in 2020 by just below 10%. How can the management justify cutting the dividend to shareholders by almost 50%? What is more, while shareholders suffered both heavy capital and income decreases, why should the management have their fees increasing with the NAV? Isn't this double standards? Where is the alignment of benefit for the owners of the company and the management?

2. While the company is trading on almost 70% discount to NAV, what is the point of the company making any other investment other than buying back its own share in the market. For example, tetragon share is trading about $10 but its NAV is over $26. So if you buy it for each share @ $10 now on the market, you instantly make a profit of over 160%, which is equivalent to tetragon's 10 years' compound investment return. So why bother investing in anything else while a much quicker, bigger and easier investment return can be made?

3. The tetragon company constitution is Undemocratic and outdated. In this modern days how can the company continue to justify denying the owner of the company, its shareholders the democratic right to vote on matters related to their own asset? Without such owner right, how can the owner have any check and balance on any wrongdoings by the company management? Isn't it time to give shareholders the voting right?

[apple53] 10/2/2021 18:41

I stand corrected.
But a promise to buy stock at a 6% discount to NAV on 31st December 2021 has concentrated minds all round.
I meant to say Herald as another example

[tiltonboy] 10/2/2021 18:01

IGC haven't bought any shares back. They are having a Tender later in the year.

[apple53] 10/2/2021 17:21

My personal view is that I would happily forego dividends provided they spend serious money asap in repurchasing stock. I think market purchases will be more effective than a tender, as the latter tends to cap the share price for a couple of months causing some potential buyers to lose interest. Buybacks are working brilliantly for collectives like india capital growth, North Atlantic Smaller, and a bunch of EM trusts.
However, I also take your point that if the buybacks are not forthcoming then dividends are better than nothing, particularly because at least they slightly reduce the fees gouged by the managers. And if the declared purpose of the entity is income then I cannot argue against those requesting a decent dividend.

As a compromise, I suggest reinstating the full div AND buying back shares like billio. And asap.

It's a hoary old thing, but at this kind of discount a buyback is, by a country mile, the highest return investment TFG can make.

[hugepants] 10/2/2021 16:31

It's just getting warmed up.

[spectoacc] 10/2/2021 16:02

TFG is a tease. Just when you think it's breaking back up.

[ceaserxzy] 09/2/2021 20:06

Good questions asked. Looking forward to see what kind of excuses will be given as answers.

The critical issue is that the share structure is Undemocratic as shareholderas as the owner of the company have no says in the company on things like fees, dividends, etc.

[alpal2] 09/2/2021 18:22

Well done, Tula. Don't keep quiet.

[tula100] 09/2/2021 15:38

Further to my earlier posting, I did email Investor Relations and received the following reply to my 2 emails below: -
We have our annual investor call at the end of the month, I have raised your issue below with our speakers who will look to answer your question directly on the call. Details of the call will be released soon.' - so I suggest you all email them and also latch on to the investor call!
-
I have not received a response to my earlier email of 2nd February.
But I am even more annoyed about this issue after reading through the information on your website where you state it is for ‘investors who wish to invest for the long term in a predominantly income-producing investment. That is exactly what I was doing, so where is my income?
-
I am a TFG shareholder and I am writing to request that our dividends are reinstated. I bought these as dividend paying shares.
When we are paid a dividend, we still have a shareholding to receive future dividends! A tender is not a 'return' to shareholders, it is simply a share sale, and if you sell at a lower price than you paid you have a negative return.
If directors can take fees based on the NAV we should be receiving dividends based on the NAV.

[spectoacc] 08/2/2021 11:42

Just needs Musk to ramp it.

[alpal2] 08/2/2021 10:34

Anyone have insight into Ripple situation or value? Price was $0-60 before SEC investigation; then dropped to $0-20 but now up again to $0-40.

[makinbuks] 08/2/2021 09:00

hxxps://citywire.co.uk/investment-trust-insider/news/trust-watch-two-uk-bargains/a1460573

[topvest] 05/2/2021 21:40

Well Tetragon must be looking at Foresight Group Holdings Limited closely. Its just been listed at a £455m market cap and gone to a premium. It only has c£65m turnover and a c33% EBITDA margin. Its a good business but a valuation of c6% of AUM looks a tad high even if the revenues are stickier than normal investment managers (where a valuation of 2% of AUM is more normal). There appears to be a bit of an infrastructure assets boom going on!

Anyway, from what I can see its smaller and less profitable than Equitix! The valuation ascribed by Tetragon is too low. There really does appear to be no serious attempt here to generate shareholder value for the minority shareholders.

[tula100] 02/2/2021 10:48

I agree about the divi. Why don't we all email Investor Relations and bombard them with requests for our missing dividends? Email: [e-mail]

We could also contact their Press Office = United Kingdom: Harriet Sloane
Tel: [phone] Email: [e-mail]

We could also track down some financial journalists like Jeff Prestridge to get them to take up the cudgels for us.

[alpal2] 02/2/2021 10:23

IronStorm: Really like your suggestion. Fab if management fees couldn't go up without shareholders also benefitting. But first reinstate quarterly div at $0.18

[ironstorm] 02/2/2021 09:01

It’s a pity the divi is not linked to performance fees. It should be. It is the corollary.

[spectoacc] 02/2/2021 08:39

Almost pains me to say it, but added a few yesterday. If Ripple isn't a write-off, the 10% NAV revaluation holds, albeit at the usual discount. Still wish they'd restore the divi tho.

[spectoacc] 01/2/2021 15:05

Agreed, and they haven't even (until last NAV anyway) performed very well, with their supposedly uncorrelated strategy.

But the divi is the main thing, with us non-voters left stuck. Cutting the divi showed a (justified) lack of faith in their ability; perhaps fair enough when Covid uncertainty was raging, but not reinstating it is wrong.

[alpal2] 01/2/2021 15:02

"... what is it that they have done since last March to justify being lower than the $12 they were then?"
It's more what they have NOT done. NOT reinstated the dividend; NOT taken any action that will benefit shareholders like major share buy-back. [Buying $25m is so small it's not worth the trouble.]
All actions by the directors are for the benefit of management via increased fees; [non-voting] shareholders are ignored.

[makinbuks] 01/2/2021 14:32

As we crawl back over $10 I still ask the simple question what is it that they have done since last March to justify being lower than the $12 they were then? The almost 50% crash was due to the pandemic not anything TFG did. Why has it not fully reversed now the vaccine is in full roll out?

[makinbuks] 01/2/2021 14:29

Which is what youd expect of a hedge fund. You have no idea what is going on until they announce something

[apple53] 01/2/2021 10:23

Thanks hpcg. Understood and makes sense.
Meanwhile TFG continues to flatline while all around are losing their heads.

[hpcg] 01/2/2021 10:16

apple - I think TFG is irrelevant to the SEC investigation and ruling. Firstly the consideration that XRP might be a security had been raised before. Secondly then, an investor putting in some protective language is saying they don't know what the situation is.

[hugepants] 31/1/2021 22:56

Yep Ripple's XRP up 50% in the last 24 hours.