Equity Research, Broker Reports, and media content on Gabelli Value Plus + Trust

  • Access the latest forecasts, broker valuations, multiples, and video content from the city about Gabelli Value Plus + Trust
  • See live updates from analysts, company announcements, and other news in a personalised/single dashboard
Login
  • 31 Oct 18

The Trump effect

Two years after the shock election of Donald Trump and with the US mid-term elections approaching on 6 November, we thought it a good time to strip out all the noise and bluster and assess what the Trump administration has really meant for US markets and the trusts that invest in them. We can identify two key policy moves Trump has achieved as President: tax reforms and trade tariffs. Each has significant ramifications for certain sectors and trusts, some good and some bad. The long-term effects are still in the balance, with the midterms a crucial fork in the road. Since Trump was inaugurated as president, the landscape of the US market has arguably transformed, with greater optimism around the near-term prospects for equities and greater pessimism around international relations. We take a look at how trusts have positioned themselves vis-à-vis these trends. “I promised the American people a big, beautiful tax cut for Christmas. With final passage of this legislation, that is exactly what they are getting.” Arguably the most significant piece of Trumpian legislation for the economy and the stock market was his wide-ranging tax reform introduced at the end of December 2017. This included cutting n the corporate tax rate from 35% to 21% and a dramatic change to the current model of taxation, in particular the taxation of US corporations’ foreign subsidiaries.

Companies: IBT USA BRNA ATT JAM JUS GVP GVP

  • 18 Sep 18

Gabelli Value Plus+ Trust - Overview

The Gabelli Value Plus+ Trust is a differentiated US equity portfolio with a high active share and a wide-ranging all-cap approach focused on identifying undervalued companies, including those with a strategic value to trade buyers. The trust was launched in 2015 during a difficult period for a value approach, but over the long run the strategy has performed well, returning 16% a year compared to the 12% of the US market. The aim is to produce real returns of 10% a year, and the focus is on bottom up analysis with no attention being paid to the indices – the trust’s portfolio has an active share of 94% to the S&P500, with a bias to small and mid-size companies where the managers believe they can add more value and which are more often the subject of takeover bids. The trust also invests a portion of its funds (currently around 10%) into companies that are the subject of takeover offers, which gives it low-risk returns not dependent on market movements. The trust focuses on total return rather than generating an income, so distributions are not guaranteed. Thanks to the value style being out of favour the discount has widened this year, although the trust traded on a premium the last time value rallied, following the election of Trump in late 2016.

Companies: Gabelli Value Plus + Trust
  • 29 Jan 18

Gabelli Value Plus+ Trust

The Gabelli Value Plus+ Trust is a differentiated US equity portfolio with a very high active share and a wide-ranging all-cap approach focused on identifying companies wihch the managers believe are undervalued, including an element of exposure to companies which are the target of mergers and acquisitions. Gabelli is a well known name in the United States, managing assets in excess of $40bn and the trust taps into the ‘Private Market Value (PMV) with a Catalyst’ investment strategy, developed by founder Mario Gabelli in the 1970s, which is now taught as part of the value investing course at Columbia Business School. Whilst there is no guarantee that this can be replicated in future the strategy has delivered significant outperformance relative to the wider US market over the long term, delivering ‘up’ years in 35 out of 40 between 1977 and 2016. Launched in February 2015, the Gabelli Value Plus+ Trust (GVP) had kept pace with the notoriously slippery S&P 500 index until the start of 2017 – outperforming it by a small margin – but fell behind last year as the index, and in particular mega-caps toward which the trust is underweight, raced ahead. However GVP’s managers don’t benchmark themselves against an index and, instead, aim for absolute returns typically to the tune of inflation plus 10%. The strategy which the trust mirrors tends to generate its relative outperformance in falling markets and has since inception – typically – lagged behind during quarters where the market has risen strongly, whilst outperforming the market when it has been in negative territory. Whilst it may underperform should mega caps rally again - having relatively low exposure to the largest US stocks - the managers believe the trust stands to benefit from increased M&A activity in the US, as companies onshore their money in the wake of President Trump’s tax changes, and from a positive outlook for domestically focused US stocks – which are a core focus for the trust.

Companies: Gabelli Value Plus + Trust
  • 29 Jan 18

What lies beneath

In a report early last year, we analysed the argument surrounding whether value investing (a style that has significantly underperformed relative to growth investing) was about to make a sustained comeback. Simply put, value investing involves buying shares in companies that the managers believe are ‘cheap’ relative to the wider market and their own histories. Many value managers, however, will only buy ‘cheap’ stocks where they have pinpointed a potential catalyst they believe will lead to share prices increasing (by analysing metrics such as cashflow, leverage, balance sheets and external factors) in order to avoid ‘value traps’ - stocks that are still in a period of decline or worse, are heading for total collapse. Growth investing, again put simply, means buying companies that are displaying above average earnings growth. Most growth managers will follow a GARP (growth at a reasonable price) approach, which means they don’t mind paying higher than average valuations for a stock if they believe future earnings growth is undervalued by the wider market. In recent times especially, value investing has become synonymous with more cyclical stocks such as mining, energy and banks, while growth investing has meant a focus on more defensive companies (with futures which aren’t dependent on economic growth) such as utilities, telecoms, tobacco and other consumer goods stocks. Those who predicting that value stocks were on the verge of a new era of outperformance were proved wrong (or too early), as they generally underperformed growth over the course of 2017. However, in our report last year (and with the proviso that the past is no guide to future returns), we found that had been a correlation between the relative performance of value versus growth stocks and the trajectory of UK government bond (or gilt) yields, with value generally underperforming when yields fell (or when bond prices rose) and outperforming when yields rose (or when bond prices fell). Government bonds have delivered almost unprecedented risk-adjusted returns over the past three decades due to factors such as credit boom prior to the global financial crisis and ultra-low interest rates over the past 10 years. However, many believed bond yields would rise last year (as they did in 2016) as inflation picked up in the UK following Brexit-induced weakness in sterling, coupled with Donald Trump’s commitment to economic stimulus. However, despite these two strong forces at work, 10-year gilt yields fell from their peak of 1.54% in late January 2017 to 1.26% by the end of the year (representing a fall of c.20%). We don’t claim to be experts in global fixed income markets, but the commonly-held view among those who do, is that bond yields will rise over the coming years (though as we mentioned last year, many have incorrectly called the collapse of the bond market for a number of years now…). While this might not be repeated, and again like last year, our analysis shows that value stocks have historically outperformed growth when bond yields have risen. However, as we highlight in this report, it is surprising how little exposure the ‘average’ UK investor has to “value” as a style, with the large majority of inflows into equity funds heading towards funds with a clear “growth” or “quality” bias. As such, if this long-anticipated revival in value investing does indeed occur – most investors look likely to miss out, or worse, be hit by capital losses.

Companies: BTEM WTR ASL TMPL GVP

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Gabelli Value Plus + Trust. We currently have 9 research reports from 2 professional analysts.

Open
124p
Volume
0.1m
Range Today
124/125p
52 Week
115/134p
Market Cap
£124.2m
Enterprise Value
£123.7m
Pension Liability
£0m
# Shares
99.7m
Latest PE (hist)
221.18
Div Yield
0.45

Latest News/RNS

(more news)
Date Source Announcement
20Feb19 11:48 RNS Holding(s) in Company
01Feb19 15:42 RNS Total Voting Rights
11Jan19 14:42 RNS Transaction in Own Shares
02Jan19 16:41 RNS Total Voting Rights
12Dec18 17:07 RNS Half-year Report: Submission of Document
07Dec18 16:14 RNS Transaction in Own Shares
07Dec18 11:14 RNS Half-year Report
Get free RNS email alerts

  • Frequency of research reports

     

  • Research reports on

    Gabelli Value Plus + Trust

  • Providers covering

    Gabelli Value Plus + Trust

  • 12 Feb 19

LIBERUM: Plus500* - Too much of a good thing

Elevated volatility is good for trading platforms, but market falls in Q4 caused significant client losses ("P&L gain”), rather than higher spread revenue. The company is choosing to subtract this gain from Q4 revenues and to base 2019 guidance on the organic growth which they have always achieved.

Companies: Plus500
  • 19 Feb 19

Cenkos: Duke Royalty Ltd - A myriad of royalties to come

Duke has announced a new £10.0m royalty investment into MRDB Holdings, trading as Miriad Products (Miriad), the largest privately-owned wholesale supplier of recreational vehicle (RV) parts in the UK. Following the recent addition of Capital Step, Miriad represents Duke's twelfth core holding, further diversifying the royalty portfolio. The deal continues the theme of investment into well-established UK businesses, with strong barriers to entry that help protect long-term royalty income.

Companies: Duke Royalty
  • 12 Feb 19

Share & share alike

Roses are red – markets are blue! The rally since the start of the year resumed this week, after a pull-back last week. The FTSE 100 has risen due to the weakness of sterling and the impact on its dollar-earning constituents. More domestically-oriented indices have also risen but lagged more recently. The latest Brexit twist is due later with a statement to Parliament on the negotiations. Company news continue to dominate the morning headlines and amendment votes the evening ones. In Share News & Views we comment on DCC, EU Supply* FireAngel*, Location Sciences*, Northbridge* and NWF.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN VRE W7L

  • 14 Jan 19

Opportunity knocks

We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.

Companies: BCA CLIN CLG CBP DNLM EAH FDL FCRM FUTR GTLY INS GLE NICL SDL SPR TRI

  • 31 Jan 19

Quarterly Research Outlook

The market has not faced quite so many conflicting challenges for a number of years, whether related to global geopolitics, trade wars, ongoing Eurozone issues or the “will they, won’t they” saga of Brexit. In our Best Ideas, we sought to highlight stocks that present investors with interesting opportunities following recent market moves. Those stocks, we believe, warrant investor attention, in many cases for uncorrelated or stockspecific reasons, regardless of the near-to-medium term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.

Companies: 7DIG ABBY AMS ANX ARS ATYM AVON BLVN PIER CGS CAML CALL CSRT TIDE DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KCT KGH LAM MACF MOD MKLW OXIG PCA PARK PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF

  • 05 Feb 19

THE MONTHLY February 2019

This Investment Research Paper addresses the issue of renewable power generation in the UK and in mainland Europe, which – after the deep-seated financial crisis of 2008/09 and the ensuing recession – now has better prospects of achieving critical mass. It also considers investment perspectives.

Companies: OPM AVO AJB AGY ARBB AVCT DISH BUR CLIG CSH DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PCA RE/ REDX STX SCE SIXH TRX TON VAL VTA W7L

  • 19 Feb 19

13.5p special DPS

CLIG’s interims released yesterday are precisely in line with the update given on 16 January, except that it revealed: Group FUM rose 9.7% in January 2019 to US$5.1bn: with Sterling strengthening from $1.28/£1 to $1.30/£1, Group FUM rose circa 8% to £3.9bn. 9.0p interim DPS (1H18 interim DPS: 9.0p) will be accompanied by a 13.5p special DPS: both dividends will be paid on 22 March 2019.

Companies: City Of London Investment Group
  • 20 Feb 19

Accelerated savings gains delivery

Second half operating trends were in line with plan, enabling management to reiterate its financial objectives for this year secured by accelerated savings gains delivery.

Companies: Lloyds Banking Group
  • 19 Feb 19

Beware of hasty conclusions

The group missed expectations by a wide margin. However, this was largely attributable to adverse market conditions, not to troubles in Asia, as evidenced by management’s comments on the lack of a radical move need and the reiteration of its mid-term objectives.

Companies: HSBC
  • 25 Jan 19

LIBERUM: Burford Capital* - Unsurpassable in an industry growing 3x

To understand Burford you have first to appreciate the growth of litigation finance, then that Burford is without peer. We estimate the industry is currently managing $15bn in assets and believe this can grow to $50bn.

Companies: Burford Capital
  • 04 Feb 19

Cenkos: Duke Royalty Ltd - A step change in scale

Duke has announced the acquisition of Capital Step, the only known rival provider of royalty finance and debt products to SMEs in UK&I. The acquisition materially accelerates development of Duke's royalty portfolio, adding 6 core new investments (to a total of 11) in several new sectors. This adds significant diversification, de-risking the portfolio to individual names/sectors. The deal is expected to be immediately earnings enhancing, reflected in our upgrades to FY19E & FY20E EPS forecasts of 5% and 3%. This gives further support to DPS estimates which produce a market leading 9% yield on our revised FY20E forecasts.

Companies: Duke Royalty
  • 19 Feb 19

LIBERUM: The Renewables Infrastructure Group - Strong 2018 with more to come

TRIG's 11.6% NAV total return in 2018 benefited from a 0.3% reduction in portfolio discount rates, increased power price forecasts and operational enhancements. Dividend cover improved from 1.1x to 1.25x in the year (adjusted for scrip dividends), a result of an uplift in achieved power prices.

Companies: Renewables Infrastructure Group
  • 18 Dec 18

In line, forecasts unchanged: growth sustained

Redde has issued an in line trading update covering H1 to date. Revenues and trading profits have grown year on year. We already assume some growth in our forecasts, and so leave our estimates unchanged. We will review our model again at the interims (27/2) once the key winter trading period has been completed. Redde continues to offer a strong 7%+ dividend yield which we feel does not reflect earnings quality. At a 6% yield, this would imply a >200p/share intrinsic value.

Companies: Redde
  • 21 Jan 19

LIBERUM: AFH Financial Group* - Targets hit and raised

FY results are in-line with our expectations. 41% EPS growth after 36% dilution from acquisition funding is an astonishing performance. The people and conditions which made that happen are all still in place, and the company has more scale, a better customer proposition and a stronger brand than a year ago.

Companies: AFH Financial Group
  • 15 Feb 19

The Biotech Growth Trust - Industry backdrop remains favourable

The Biotech Growth Trust (BIOG) is managed by Geoff Hsu and Richard Klemm at OrbiMed Capital, one of the leading global healthcare asset managers. The year 2018 proved to be tough for the trust’s performance as biotech companies delivering negative news were heavily penalised, while those delivering good news went unrewarded. However, the managers are optimistic about BIOG’s prospects. They cite a rich industry innovation pipeline that includes a series of technologies with multi-billion-dollar revenue potential; a favourable regulatory environment; and a higher level of deal activity, including major pharma company Bristol-Myers Squibb’s recent bid for Celgene (one of BIOG’s largest holdings) at a significant premium to its pre-bid share price.

Companies: The Biotech Growth Trust