Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
To maximise capital growth by investing in a diversified portfolio of private equity funds and occasionally directly in private companies.
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Todays £2M 'director' share purchase is a pretty strong endorsement that they believe their valuations are robust.
I generally run PIN at around 5% of portfolio with a bit of top slicing/topping up according to the markets and the discount.
Topped up my wife's ISA with a tranche of PIN in mid July so I am in her good books atm!
TBH I have held Pantheon for about 8 years and it has been one of the best quality investments overall in terms of growth vs volatility in my entire portfolio. And my portfolio is probably a bit too eclectic if I am entirely honest !
Ultimately the SP does trend to the NAV. There’s always the question if the NAV is overstated but recent realisations are over 40% higher than the booked NAV.
So it continues to look like managers are booking conservative NAV estimates, the discount is approaching Al time highs and …
“The Board remains disappointed with the discount of PIP's share price and considers the current elevated level relative to the value and prospects of its portfolio to be unwarranted. Accordingly, it intends to buy back shares actively to enhance shareholder returns”
“PIP's NAV per share has grown by a remarkable 31%, of which 24% arose from portfolio gains and 7% from favourable currency movements. PIP's share price, however, has grown at a more modest 9% reflecting the turbulent market conditions at the financial year-end. This has resulted in a significant widening of the discount to NAV from 21% at the end of May last year to 35% at the end of May this year, and further to 43 at the time of writing.”
NAV 462.7p with a share price of 254p.
Not seen these sort of discounts for a decade.
Quite a detailed RNS.. So NAV 31/5 was 451.6p, an increase of 31% from May 2021; and yet discount increased.
Also did £10 million in share buy backs, and yet discount increased.
The average discount of the buy backs was 27%, but by my calculations the Discount to NAV on the 31/5 had widened to 34.5%
The SP is down with such a widening of the discount to NAV but still represents a better return to the FTSE all share over 1yr, 3 years, 5years, 10years, and since inception nearly 35years ago.
The discount has presumably widened more, and could widen further and certainly did in 2008-9. Such wide discounts in retrospect have been buying opportunities.
PIN remains a core of my retirement fund, which reminds me I simply must sort out this years ISA.
Remains a core of my retirement fund
of the valuation downside here
History suggests PIN sp overdoes it on the downside at times of "panic", so speculative tp of <£2 to trade for sharp rebound (let's see lol)
Helen giving a couple of interviews about PIN and why you should have some private equity in your portfolio and why it should be PIN.
I agree with her basic precepts. A company that can deliver 12% growth, 3-4% above wider market but is at such a discount is illogical especially when it’s delivered this over 35years.
Always a concern that stocks are booked unrealistically high valuations but it appears the reverse is true and managers have tended to understate so there has been typically an uplift on existing of between 20-30% and over the past 6month has been over 40% (so true discount maybe even greater)
https://www.youtube.com/watch?v=yjSxlCm_b2c
hTtps://www.youtube.com/watch?v=AQ1M2WB1LoE
Indeed, theres always a concern about NAV valuations but the tend to be conservative.
There is a correction to NAV, over stated by 3p...
And an RNS about a presentation by Hardman and Co. I suspect they will touch on valuation policy.
I guess the concern is that with around 80% of valuations being from the end of last year how representative of their current values is the quoted nav .
NAV 434p, so nearly a 30% discount. Time for some more buybacks??
Good to see regular buy backs, should help the share price and NAV
re ESG This came up at the AGM and in this presentation, They were an early signatory of UNPRI in 2007.
This side of things is important for a number of their corporate investors such as pension funds.
The risk is that they turn down good investments. I did raise this with Sir Laurie Magnus and certainly one of the other companies he is involved with is more than happy to invest in companies such as tobacco which they feel may be over sold because of ESG bandwagon.
For Pantheon they don't see it as so much an issue as many of the firms they are ultimately invested in are in technology, healthcare, support services etc.
Certainly hasn't damaged their performance so far but for those that believe the world is changing and needs to change then this means that the companies of the future are going to be found in the venture capital sector today. And if your also interested ensuring your money is invested in companies that hold ESG principles highly for a "better world tomorrow" then Pantheon remains a good investment IMO, DYOR.
The latest NAV last week was 394.3p, or at todays price a discount of 18.4%.
It is certainly more reasonable and looks like the share split has worked.
Arguably logically the company should trade at a premium given its long term out performance but it has rarely traded at SP=NAV.
The company has also stopped buybacks though again logically even at 18% discount buybacks would increase NAV as well as increasing the buyers to sellers and both effects would increase SP.
...to net asset value and scope for at least an 80p rise in next few months which would take it to about 20% discount, generally considered about right for private equity.
All sorted. KID wasn’t updated by thu and Lloyds won’t let you invest without confirming you’ve read it. Normal business has resumed.
Hmmm. My lloyds share dealing account failed to execute a buy today. ‘This share is no longer traded’. Worrying. Anyone bought since Monday’s changes? Has the ticker changed? V puzzled ??
Yes, thanks for that Tobin.
Thank you Tobin for a well informed and interesting update. What more can a newish investor want? I came in for the split and predicted £3.20. That now looks about right but am I going to sell to move elsewhere?
This is only c5% of my current portfolio and I have to ask myself if I could do better elsewhere with a similar risk profile?
The answer id probably not , so will continue to hold unless the SP spurts ahead quickly.
Made it to the AGM, thanks to my ever persevering wife.
Voted for the 1 to 10 split that will no doubt be announced soon, and come in from the 1st November. They have been advised that it may make PIN more attractive to retail investors. They maybe right but I doubt it will narrow the discount much. But maybe it will be teslas share split?!
The wide discount does vex them, and though when I asked Sir Laurie Magnus at the Q+A if there would be more or larger buybacks he was properly noncommittal not wanting to give the message that the company would become the buyer of last resort; but he did not that they had made recent purchases and did not rule out more.
Notably John Burgess who joined the board in 2016 has increased his holding in the past year from 39,982 to 193,063; so nearly £6million. A man with long career in PE ..Candover, and then joint founder of BC Partners ( formerly Baring Capital).
A knowledgeable insider buying in big, what's not to like?
Founder Roddy Swire was there still, sitting in the audience having stepped down in 2019 ago from the board after his 9 years as is guidance for ftse 350 companies apparently. I said in 2019 that I felt that this was inappropriate and that continuity was more important; so it is good to see he is still around and still involved.
I spoke to a couple of PIs including one who was the original tax inspector for the company 30+years ago, as well as SLM and several of the directors, their auditor, etc. Remains vey much what it has been all the time I have been investing with them; a professional and friendly team who I am sure will continue to guide the good ship PIP from bottom left to top right though there will no doubt be a few waves along the way.
I don't give strong buys willy nilly. PIN is probably the best value listed private equity buy at today's price. PIN continue to buy quality companies with the like of HG and Apax but all at 25% discount much wiser discount than both HG and Apax have.