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https://www.investormeetcompany.com/investor/meeting/full-year-results-22
Blimey, SWS, you've read my mind completely.
I was annoyed too, almost wrote to them, but thought what is the point.
I, out of principle, didn't apply, to augment my initial investment.
I'm also concerned that after an initial pleasant 20% increase in SP, they've managed to fritter it all away.
They're objective of an annual 10% gain, seems likely to fall at the first hurdle. Not helped by this recent raise at the same price as initial offering.
As you say, not exactly supporting those who have been with them from the start.
I have to admit I was quite annoyed by the recent raise. First off, institutions only (not uncommon I know) but this fund is aimed at more sophisticated investors. I think my main irritation was that it was at such a discount to the price just prior to the announcement and also at the IPO price. Personally I think they should have pitched this at 102p or even 101p so that those who supported the IPO didn't feel like it has been a 9 month hold for nothing.
Fortunately I was able to pick some more up when it dipped below £1 but that doesn't improve my moo regarding the placing. I think this is a great fund and has huge potential - I see it as a way for Ineos to assess hydrogen tech before snapping companies up at hopefully a decent premium for us.
The fund is primarily to be invested in unlisted companies (at least 70%) and such companies are by their very nature hard to research and hard to value.
The valuations of unlisted companies will only change when there is some corporate event such as fundraising, listing or takeover etc. This is the reason why the NAV has remained static at the low 90s range for months.
They have made some relatively small investments in listed companies; in the first quarterly fact sheets the largest of these were :
2. Doosan Fuel Cell Co., Ltd 0.59%
3. Aker Horizons ASA 0.58%
4. AFC Energy PLC 0.54%
5. Cell Impact AB 0.53%
As these investments are small then any large changes in their SP will not have a dramatic effect on the NAV. AFC Energy's SP has almost halved in the last 6 months but HGEN has been relatively stable (which is of course the idea behind such funds!)
You have to look at HGEN as a medium to long term investment.
A very interesting article in the acceleration of hydrogen technologies, sooner or later the smaller companies will also benefit and when able to float, that's when the real gains will happen.
https://www.bbc.co.uk/news/science-environment-60664799
It seems to me that when the rest of the wider Hydrogen market is falling this IT rises and when the wider Hydrogen market rises this falls?!!
Maybe need to pay more attention to exactly which companies HGEN is invested in. It seems from their info it is only 5 companies, none of which I had heard of before.
https://hydrogenonecapitalgrowthplc.com/investors/private-investments/
Does anyone know where I can find what Hydogen ONe is invested in?
Yes, you are quite right, although under the current circumstances is holding well (hope I haven't spoken too soon! )
Taking it's time!
To catch up with the rest of hydrogen companies substantial price increase?
Very likely!
Yes selecta definite typo overstated!
There was no basis for the SP to have risen to the level it did so fast; the NAV is still 95p and hydrogen plays have had a bad time recently.
They’re looking to raise capital so Potential dilution of existing shareholders.
Longterm looks better.
Seemed ok to me, but the market doesn't like it!
Having steadily climbed since IPO, this is the first significant decline in SP.
Is there a typo in the update?
7th para..
'Since it's IPO, HGEN has.......'
Surely the last word in this paragraph should be OVERSTATED not understated?
Thoughts?
I am very surprised as to how this has help so well considering most of the pure hydrogen plays ie ceres, itm have lost 20 % in the last week !!!
The fund, which appears to have enjoyed an encouraging 2021 debut, is HydrogenOne Capital Growth (HGEN). The £104m fund has been stoked with a £25m investment from Sir Jim Ratcliffe’s Ineos – the world’s third largest chemical company. Investors have seen a 16 per cent return this year.
See article below.
https://inews.co.uk/inews-lifestyle/money/investing/hydrogen-new-clean-fuel-keep-britains-heating-on-1344367
Just applied for a chunk of ThomasLloyd Energy Impact Trust PLC (TLEI) floats in six days. I think it compliments my holding here as it intends to pay a divi up to 7%
Yes sharesport, good to see more capital deployment, I was beginning to get a little worried. Looks like around 35% invested, hopefully there will be more news soon.
Good RNS today - seems like a targeted and well considered approach. GLAH
@Crocqman
Also occurred to me that they would likely want to see the COP26 circus run its course, and leave town, to judge the momentum and direction for hydrogen. So on balance I'm relaxed about leaving my investment in place for another few months, but I can't say I'm keen to top-up without more evidence of a 'cunning plan'.
Agree.
They would normally have a model portfolio in mind and would look to invest based on a pro-rata basis the size of funds available at launch.
There may well be some liquidity issues of course, with some smaller companies to prevent reaching full target straightaway, and perhaps they are looking to take some stakes in some private companies that will also take longer to complete. The latter is more likely, imo.
A 20% return in the near term is not to be sniffed at though, given the levels of investment to date.
Sadly, I have had to sell out here as I need funds while awaiting a property sale to complete and this holding was outside of my ISA, but will be back in once the sale proceeds are available.
I will be keeping an eye here in the meantime
gla
Seems odd to me that so little is yet invested. Reasonable to presume that the managers had researched the sector prior to launching the fund, so four months in, I was expecting more activity. Sitting on cash is not likely to encourage or inspire new investment.
Yes, with a net asset value of 98p there is a lot of hope and high expectations built into the current sp!
they the Sunfire investment 20% of portfolio and 10% in quoted stocks, rest in cash
Not sure that warrants a 20% premium though!