At Hardman and Co, we try to answer the questions of why to invest in a company and what the risks are in doing so. For many investors, simply having a deep discount to NAV is a good enough answer to the first question. However, investors need to appreciate the risks and, in particular, the reasons why the shares are at a discount. Having understood those risks, investors need to be convinced that there is a catalyst for change on the part of the manager and how long (if at all) it will take for market sentiment to reflect this in a lower discount. In this report, we examine the companies with the largest discounts and review those very issues.

14 May 2019
Understanding the deepest discounts
Jade Road Investments Limited (JADE:LON), 1.2 | Better Capital (BC12:LON), 0 | Canadian General Investments Ltd (CGI:LON), 2,190 | JZ Capital Partners Limited (JZCP:LON), 0 | LMS Capital PLC GBP (LMS:LON), 21.6 | Macau Property Opportunities Fund Limited (MPO:LON), 24.3 | Marwyn Value Investors Ltd Registered (MVI:LON), 115 | New Star Investment Trust PLC (NSI:LON), 0 | North Atlantic Smaller Companies Investment Trust plc (NAS:LON), 0 | Oakley Capital Investments Ltd Registered (OCI:LON), 521 | Pershing Square Holdings, Ltd. Public Class USD Accum.Shs (PSH:LON), 4,170 | Riverstone Energy Limited (RSE:LON), 825 | Symphony International Holdings Ltd. (SIHL:LON), 0 | Tetragon Financial Group Limited (TFG:LON), 1,620 | Third Point Investors Limited Shs USD (TPOU:LON), 2,585 | UIL Limited (UTL:LON), 124 | Value and Indexed Property Income Trust PLC (VIP:LON), 0 | El Orouba Securities Brokerage (EOSB:CAI), 0 | Hansa Investment Company Ltd (HAN:LON), 267

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Understanding the deepest discounts
Jade Road Investments Limited (JADE:LON), 1.2 | Better Capital (BC12:LON), 0 | Canadian General Investments Ltd (CGI:LON), 2,190 | JZ Capital Partners Limited (JZCP:LON), 0 | LMS Capital PLC GBP (LMS:LON), 21.6 | Macau Property Opportunities Fund Limited (MPO:LON), 24.3 | Marwyn Value Investors Ltd Registered (MVI:LON), 115 | New Star Investment Trust PLC (NSI:LON), 0 | North Atlantic Smaller Companies Investment Trust plc (NAS:LON), 0 | Oakley Capital Investments Ltd Registered (OCI:LON), 521 | Pershing Square Holdings, Ltd. Public Class USD Accum.Shs (PSH:LON), 4,170 | Riverstone Energy Limited (RSE:LON), 825 | Symphony International Holdings Ltd. (SIHL:LON), 0 | Tetragon Financial Group Limited (TFG:LON), 1,620 | Third Point Investors Limited Shs USD (TPOU:LON), 2,585 | UIL Limited (UTL:LON), 124 | Value and Indexed Property Income Trust PLC (VIP:LON), 0 | El Orouba Securities Brokerage (EOSB:CAI), 0 | Hansa Investment Company Ltd (HAN:LON), 267
- Published:
14 May 2019 -
Author:
Mark Thomas -
Pages:
43 -
At Hardman and Co, we try to answer the questions of why to invest in a company and what the risks are in doing so. For many investors, simply having a deep discount to NAV is a good enough answer to the first question. However, investors need to appreciate the risks and, in particular, the reasons why the shares are at a discount. Having understood those risks, investors need to be convinced that there is a catalyst for change on the part of the manager and how long (if at all) it will take for market sentiment to reflect this in a lower discount. In this report, we examine the companies with the largest discounts and review those very issues.