Tetragon Financial Share Discussion Threads

[makinbuks] 14/10/2021 12:21

I do agree with all the negative sentiment here about fees and corporate governance issues, but on the fundamentals I don't see why we should be 10% approx down from early 2021. Indeed the NAV is higher now that pre covid. the fees and governance issues are unchanged yet the share price is £9 not £12. That is an interesting situation

[donald pond] 13/10/2021 17:54

It's interesting in the same way your morning ablutions are

[hugepants] 13/10/2021 17:53

"interesting" is certainly one word to describe this stock. A real gem this.

[chrisdgb] 14/9/2021 11:54

Bought in last week, think it is a very interesting special situation.........

[alpal2] 14/9/2021 11:50

ironstorm: Well done to you for selling out. I continue to hold hoping that some institutional investor will kick up enough of a fuss to force action. In the meantime my losses escalate....

[ironstorm] 14/9/2021 09:36

Glad to say have sold out of these finally.

Capital loss but small gain thanks to the previous dividend prior to the haircut.

Happy to have the cash to deploy elsewhere in due course.

GLA

[alpal2] 07/9/2021 10:18

....and the share price decline continues as more recognise that managers are only interested in themselves and have no intention of doing anything for [non-voting] shareholders.

[alpal2] 02/9/2021 10:10

What does it say about management who [despite the 65% discount to NAV] do not think the shares worth buying for their own accounts.

[spectoacc] 01/9/2021 15:54

Isn't helping the S/P much.

[hugepants] 01/9/2021 15:40

I see this bunch of comedians are continuing to write up the value of Ripple.

[topvest] 12/8/2021 14:35

A good post - I agree with you - that's the worry with this vehicle!

[riskvsreward] 09/8/2021 18:25

If the management don’t care about their own integrity, reputation and esteem as the market persistently shows them the disdain and contempt with such huge discount and if they don’t care at all about their shareholders, how far do you think they are from being crooks.

[spectoacc] 09/8/2021 14:30

Not sure how they'd have expected to, given the voting.

95% discount? ;) They're not crooks (IMO), they just see Tetragon as their own personal vehicle.

[topvest] 08/8/2021 21:31

I wouldn't buy any more simply because I don't trust management. It was my mistake as I didn't spot the red flags when I first reviewed. Active Value Trust appear to have made the same mistake as they have not been successful in unlocking value.

[spectoacc] 08/8/2021 16:31

@topvest - what if the discount went to say 80%? ;) Everything has its price IMO.

@riskvsreward - agreed, but bear in mind the TFG structure is exactly what Rishi & Boris are proposing for the Main Market - allow golden shares, skewed voting rights, smaller free floats. Daft, IMO. But eg The Hut Group been popular.

If - a big if - TFG do ever change, there's a lot of upside.

[topvest] 08/8/2021 11:05

Yes, have to agree that Tetragon is a poor investment. The company is not run for shareholders but for a competent, but self served management who appear to lack the one key trait - integrity!
Will they address this - unlikely, but I am still holding my small investment. I won't be adding any more, that's for sure!

[riskvsreward] 07/8/2021 19:58

That is another puzzle that I cannot understand how the institutional investors who invested at the initial subscription of this trust had agreed to such terms. That is like the management told them to give us money and we can then do whatever we like no matter you like it or not and you would have been trapped in. One should have serious doubt why such terms are needed in the first place and for whose benefit! As one golden invest advice goes, when in doubt, don’t invest.

[rambutan2] 07/8/2021 19:55

Having held for a few years, a few week's ago I finally accepted defeat and sold out. Of all the trusts I have held over more than two decades, many of which could be termed alternative assets and special situations, TFG's charging structure is the most egregious I can think of. In particular the continual issueing of shares to themselves. The management/board show absolutely no interest in being a bit more shareholder friendly, unlike the rest of the sector which has moved on in recent years - dinosaurs. No redeeming qualities etc etc etc. In any case, I am just the sort of "sophisticated" long term shareholder which TFG needs to hold onto, and I'm gone for good.

[spectoacc] 07/8/2021 19:06

Agree on the dividend point, and that some of the investments are on the esoteric side. But I think much of the discount can be laid at the door of the voting rights.

[riskvsreward] 07/8/2021 18:54

The point is how much one can trust the discount if it is only a number that the management made up (I know there is accounting rules and auditing etc, again it is about their credibility). It is like one put an exaggerated value on a house of say a £ one million number but it cannot get you any rent. If Tfg nav is truely almost three times share price, and the management claim of over 10% long term annual return on nav is also true, then it can afford paying 10% dividend with still almost 3 times dividend cover which is conservative by any standards. Why did they cut dividend by over 40% and refuse to restore the dividend to its previous level?

[spectoacc] 07/8/2021 13:55

"When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."


And it was indeed Warren B - half the quotes attributed to him tend to be Charlie Munger (aged 97 and a half).

But whilst that's undoubtedly a solid aphorism for eg buying Tetragon at par, I'm not sure it applies when it's sat at this discount.

They need a turn-up in performance tho - never shown any sign of closing the discount via other means.

[riskvsreward] 07/8/2021 11:36

One wise advice from all great investors like Warren Buffet is “ don’t invest in company with untrustworthy management” and the top management of Tetragon is definitely in that category. The high nav is a trap. It is not of value if it is neither realisable nor bringing a good annual return in income.

[spectoacc] 06/8/2021 21:10

Tetragon seem capable of losing money in bad markets and good - what else is there other than the discount. Hard to see it narrowing without a pick-up in performance, and the fees don't help with that.