Tetragon Financial Share Discussion Threads

[makinbuks] 02/2/2022 11:12

Yes correct, not the same legal construct as in the UK but same principles

[f56] 01/2/2022 21:55

makinbuks - are you talking about closed end vehicles in America?

[chrisdgb] 01/2/2022 12:23

A truly incredible turnaround and should be made clearer for all concerned.........!

[makinbuks] 01/2/2022 12:07

Yes the share structure where the quoted shares are non voting is more normal in America

[f56] 31/1/2022 16:35

They believe they are operating a common US structure? Can you explain?

[makinbuks] 31/1/2022 13:16

ceaser, great point

tiltonboy, LOL

alpal2, Without structural reform and a complete governance overhaul I don't think you will ever be satisfied and simply that wont happen. They believe they are operating a common US structure and being criticised for it in the UK. On Ripple specifically I don't know but I think tiltonboys point was only partly in jest

[alpal2] 31/1/2022 12:14

Makin: No, I would rather that shareholders benefitted. Do you think that's likely?

[tiltonboy] 31/1/2022 12:11

I would guess this paves the way for a $50m Tender Offer.

[ceaserxzy] 31/1/2022 12:08

While the ripple venture has turned out to be a decent investment (not that great on a risk vs return basis), it is nothing compare to simply buy their own NAV at $26 to $ 30 in the market and only paying $9.0, without the need to pay the fat fees and salaries for the fund managers as anyone can do that with no or minimum risk.

[f56] 31/1/2022 12:00

Appears to be a good deal considering the duration was only 2 years. NAV is heading in the right direction.

[makinbuks] 31/1/2022 11:56

I think the issues with governance here are well known and been aired widely. I certainly don't defend the management but lets see credit where its due

[hugepants] 31/1/2022 11:56

Thanks houseofpain. More than a decent outcome actually. It shows the quality of this management team.

[makinbuks] 31/1/2022 11:54

So you'd rather Ripple had gone bust?

[alpal2] 31/1/2022 11:52

Ripple exit gives nice uplift in fees to management; does nothing for shareholders.

[houseofpain1] 31/1/2022 10:52

@hugepants: I think the Ripple position maths (on a gross basis) is as follows:

Original investment of $150m at $10bn valuation. $225m returned at $15bn valuation. Plus c $48m of preferred stock dividends ($26.4m pa).

The dividends were accrued within the value of the position as time went by - ie, after year one, the holding was being carried at $174.6m - so will have already have been in the NAV subject to my next para.

The only bit I'm unsure on is whether the dividends were cash accruals or shares. If shares, then if they were accruing at the $10bn original valuation, then there may have been some additional uplift on the dividend element at exit as well.

Either way, it's a decent outcome.

[makinbuks] 31/1/2022 10:15

Maybe this is the trigger Spec, we can only hope

[ceaserxzy] 31/1/2022 10:07

It would be fair if they use the same standard for paying themselves as they pay the shareholder,i.e pay their fee based on a percentage of the share price as they lauded about the dividend yield they pay their sharehodlers.

No. The anomaly is that they pay their fee based on NAV going up from around $23 to now about $30 over the last three years, so their fee has gone up by over 30%, but in the same time reducing share holder dividends by over 40%.

[hugepants] 31/1/2022 09:49

Can anyone work out the profit made on Ripple? I'm not sure there is enough info over the last 2 factsheets to be sure but it looks like they were correct to keep writing up the value of this investment despite people questioning this (including myself!). It does generate confidence that the overall portfolio valuation is realistic and that the NAV discount (67%) is genuine

[ceaserxzy] 31/1/2022 09:31

As always, the greedy managers had it just in time for a nice year end bonus and the rightful shareholders have nothing to show for the apparently "great performance" of permanent annual growth of over 12% but a dividend reduction from 18 cents to 10 cents per quarter over the last two years.

[tiltonboy] 31/1/2022 08:43

It's a year-end valuation, but as you say.......

[scburbs] 31/1/2022 07:56

Just the 300+m monthly gain on Equitix.

Worthy of even a brief comment from the company?

No.

Will it generate some nice performance fees for the manager?

Yes.

[alpal2] 27/1/2022 10:05

Even better if they gave the money to shareholders; but little to no chance of that.

[tiltonboy] 27/1/2022 09:48

I wasn't certain that there was a clear extrapolation between the buy-back of the Preferred shares, and the new valuation for Ripple.

Clarification would be good, but not holding my breath!

[hugepants] 27/1/2022 09:44

Says they bought the shares back at a £15 billion valuation whereas the initial investment was at £10 billion. If so TFG have done very well. No announcement from the company though. Too much effort obviously.