Tetragon Financial Share Discussion Threads

[spectoacc] 30/3/2022 15:52

Each time I think the discount has to come back, it gets larger :)

Tricky, as selling down here is realising a loss, missing out on future divis, and missing out when it does finally narrow (surely 40% not 60% more reasonable).

On other hand, twice been caught in illiquid things on market crashes, 2008 & again 2020. And whilst the market thinks the worst of Russia/Ukraine is behind it, I fear all the ducks are lining up - Russia/China, oil, inflation, peaky valuations.

Then again, if it goes off near to market price, I will still be in :)

[alpal2] 30/3/2022 15:33

Specto: Would love to advise you not to sell as management will be taking substantial action to reduce the discount to NAV. Sadly that's as likely as me seeing pigs fly. I will continue to hold but suspect that in a year the discount to NAV will be much the same as at present.

[spectoacc] 29/3/2022 10:18

Tendering mine, at above current price, but fully expecting it to go off around market price. If it's like last time, will hopefully see a drift up once completed.

[spectoacc] 15/3/2022 11:51

Thanks @alpal2, didn't know they were fungible. Will see what the lamentable HL make of the tender.

[alpal2] 14/3/2022 12:03

specto: My understanding is that, as the TFG/TFGS shares are fungible (you can swap between the two] so even if you hold TFGS you can tender for USD price.

[spectoacc] 11/3/2022 16:15

"..With shareholders able to tender their Tetragon non-voting shares at prices ranging from and including $8.00 up to and including $9.75 per share."


Anyone know what terms - if any - apply to TFGS, the Sterling class? Can see no mention of it.

[topvest] 09/3/2022 20:00

Less AUM - less earnings for management. I guess they are trying to juggle different priorities. It's not like a normal investment company, as the managers of the fund manager own 35% of the shares and earn their salary by managing the assets. It's a bit of a conflict of interest really.

[alpal2] 09/3/2022 18:14

topvest: Why would "buy back too many shares would damage the 35% stakeholder interest"? They can stop buying at any time if the discount gets too narrow.
But it's surely irrefutable that buying back share must give a return to all shareholders greater than any of their other investment possibilities. What other investment gives an immediate return additional to NAV of triple the value spent?

[topvest] 08/3/2022 11:34

Annual report is better than prior years. I do agree with the comments around the discount and token dividend. It's a tricky one for management though as to buy back too many shares would damage the 35% stakeholder interest. The discount is ridiculous though and points to a conclusion that minority shareholders are going to get "had over" at some point. Anyway, I am not a buyer or a seller at any price until we get some tangible evidence that shareholder value is being dealt with. Will keep holding.
At least the business is generating reasonable returns. The Equitax revaluation was interesting. No mention of the large exceptional charges in their accounts due to COVID-19 delays, but instead a large valuation uplift. I suppose it was undervalued versus things like Foresight Group though. They did mention that an IPO of the asset management arm wasn't yet viable, but individual transactions might be. I would have thought that listing Equitax at some point over the next 3 years might be a money spinner!

[tiltonboy] 07/3/2022 20:52

They state 35%

[ceaserxzy] 07/3/2022 17:09

Anyone has any idea how much this co. is owned by the insiders? It is strange that it has never released any RNS on the insider holdings or changes in such holdings.

[alpal2] 07/3/2022 16:50

stoxman: I all comes down to greed. If they buy back shares then it decreases the assets under management and that reduces fees. The theory is that in a company with reasonable corporate governance, the interests of management and shareholders are aligned. Sadly not in the case of TFG where looking after the interests of shareholders would negatively impact management fees. And who has the ultimate say? What a surprise that management look after themselves and are quite happy to ignore the interests of non-voting shareholders.
But we mustn't be too nasty, they have increased the dividend by $0.01 to $0-11. Just forget that it was $0.18 before they cut it nearly in half.

[stoxman2] 07/3/2022 16:02

The usual blah, blah, blah during the investor call. It would be SO easy to realise shareholder value or at least signal true alignment- set a 20% discount target in [2] years or they will align fees to share price rather than NAV AND give votes to non-voting shares AND bring in NEDs AND sell assets to buy back meaningful numbers of shares etc. Why buy back 50m when they have a guaranteed 100%+ return by buying back their own shares?

[alpal2] 07/3/2022 08:37

This tender offer is the usual silly sop to shareholders. $50m does nothing; it needs to be at least $250m to be effective. Since the previous buy-backs of $50m have done nothing; why on earth would they expect a different result this time.
But the management don't really care [no independent directors] as long as fees keep rolling in.

[chrisdgb] 07/3/2022 07:49

Tender offer...........

[alpal2] 23/2/2022 16:28

Is there any point in asking when the directors will do something for [non-voting] shareholders?

[tula100] 21/2/2022 22:09

Tetragon will host a conference call for investors on Monday, 7 March 2022 at 15:00 GMT / 10:00 EST to discuss its annual report and to provide a company update.

During the call, Tetragon’s investment manager will also seek to address questions raised by investors, including questions e-mailed to [e-mail].

[chrisdgb] 09/2/2022 15:27

Broker pushing these on a 60%+ discount to NAV..

[chrisdgb] 08/2/2022 12:51

Expect a lot more interest in this now....

[makinbuks] 08/2/2022 12:45

Looks like the Ripple /SEC case is going their way which is presumably why they bought us out. Were we too quick?

[spectoacc] 08/2/2022 10:50

It's been a l-o-o-o-n-g wait but do have to wonder if the relentless slow grind down has finally shifted the sellers - the committed ones, at least.

All we need now is a doofus like Questor or Simon Thompson to tip it :)

[alpal2] 08/2/2022 09:38

Nice move in share price over the last week. Do hope it presages the directors doing something for shareholders. Would hope for dividend being reinstated at 18c; but let's not get overoptimistic.

[makinbuks] 03/2/2022 14:42

No although that's an interesting question. My sole exposure is through UK vehicles in this space Tetragon and Pershing

[f56] 02/2/2022 21:28

Is there anything in the closed end space in America that you like?