Oakley Capital Investments <-- share

EdGasket · 7 April 2017 at 4:39PM

This is not one of those too good to be true posts (e.g. 9% guaranteed bonds etc.); just wondered what people think of this share. It currently trades at a 33% discount to NAV as reported in the Finals on the 5th April. Yield of 2.9% plus capital growth seems steady but not spectacular for the last 10 years. Directors have been buying in lately which is always a good sign. I understand the assets to be various investments by a hedge fund so not a load of over-valued legacy plant and machinery or goodwill. What's not to like? Anyone have a view?

bowlhead99 · 7 April 2017 at 5:15PM

It's their listed vehicle to invest in their private institutional investment funds. Which are private equity funds rather than hedge. Rule one of investing, know what you're buying; rule two recognise and demand a large discount for illiquidity of the underlying assets. It is never going to tighten to zero discount.

But they are a totally legitimate operation; some of their fund investments have been more successful than others over the years. I have a small holding in a VCT they run which probably won't set the world alight; I've seen some of the reports from their institutional funds across my desk in a professional capacity a few years back. Haven't really evaluated the IT.

EdGasket · 7 April 2017 at 5:31PM

Meant to add the ticker code: OCL

The underlying assets may be illiquid but no problem with buying/selling OCL except the spread can be higher at times e.g. 151.25/155 today.

Thanks for your reply bowlhead99. I believe Simon Thomson in the IC also has them in his portfolio; not that I am a fan of his after the NBU and CAMK debacle!

BTW how does private equity differ from hedge funds; isn't there some overlap?

From Wiki:
Hedge Fund: hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques

Private Equity Fund: A private equity fund is a collective investment scheme used for making investments in various equity (and to a lesser extent debt) securities according to one of the investment strategies associated with private equity.

Thrugelmir · 7 April 2017 at 6:34PM

Only just started paying a dividend. Been on my radar too. Though have other private equity holdings that I've preferred recently.

Oakley Capital Investments <-- share

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