As long as you're prepared to hold for reasonable period (2 -5 years) you'll have no problems with this one. A discount of ca. 20% is good value for this stock as the current investment managers are well proven. I can't ever see this trading anywhere close to NAV due to the Cayser factor (they control just under half of the shares) but as long as they keep investing diligently (no one gets it right all the time) we'll see a lot more Sloane Clubs, Park Holidays etc days when assets are realised for well above their generally conservative published asset values.
It's Caledonia that reduced its stake in Polar Capital not the other way round. they've been reducing their stake for a while now and Polar has been another fantastic investment for the team. I wouldn't hold your breath waiting for any share buybacks though, the Cayzer factor is complicated and basically an inhibitor on buy backs. The bounce today is IMO down to selling another unquoted asset, The Sloane Club, at well above recent NAV. 6 or 7 years ago while looking for accommodation for a few nights in London I checked out the Club in the forlorn hope that there might be some sort of shareholder discount (there wasn't). What I saw, from an accommodation perspective, was a throwback to the 60s/70s type hotel with no en suite facilities and quite basic rooms. Presumably the needed investment has been made, the margins boosted (it was about £80 a night IIRC) and the place has been sold on realising the value of both the ongoing business and the underlying real estate. Well done to Will Wyatt and the team, again.
Always difficult to decide on when to sell a privately held asset ;but Caledonia seem to have got a very full price for the Sloane Club based on likely profit potential & growth of property value.
Interesting to see what they do with the cash......
18% is a wide discount by recent standards but not by historical standards. Remember the fund contains unquoted investments (where the NAV is subject to change quite quickly), and funds that invest in unquoted investments, and you have the huge Cayzer family block which inhibits normal discount control mechanisms (buybacks). Add to that the fact that the cross shareholding with Sofina is being untangled (see resent RNSs) resulting in a fair bit of selling these last few months then we may be at a point where it would be worthwhile topping up but I won't be for now. Best of luck PS I've held these for 15 years.
There's been a general broadening of discounts/narrowing of premiums in the IT sector for a while now. Investors getting a little nervous with market levels. Couple that with the Cayzer factor which IMO also pretty much prevents the discount disappearing on this trust and you get where we are. The NAV progress continues to be excellent.
It has paused for breath now because a whole pound a share has been taken and given as a special dividend,but the nav has grown so much over the last few years they can afford to give some back to shareholders.
The share price and nav has done really great over the last five years and the last 12 months has done great.
Don't know what you expect from a investment but cldn has beat my expectations every year for a long time now.
I jumped in a few days ago because of the divi so am quite please that the drop of 102p is lower than the divi of 139.9p. I did try to buy more but HL were quoting a higher price by about 15p/share - no idea why. Anyway it looks consistent in performance and there are few shares that can claim a divi rise spanning 50 years so I'm happy to stay a while and may even add.
I think last time I bought Discount to NAV was North of 20%.
But saying that, in rampant Bull Market when any value is difficult to find, 17% looks OK.
If we get a pull back, CLDN won't be exempt, but we care as long term holders?
Of course not, we'll just add more.
I'm my usual cautious manner, if I wasn't a hard buyer at this time, I'd be knibbler deploying cash that I wasn't holding for big sell off. That might be tomorrow, it might be 24 months away, either way I'll be adding more at some point.
3235 wow these guys do like to drag the nav up!
What a performance,this is what drives the share price,as the nav goes up the share price has to go up to keep the same discount to nav ,the fantastic nav performance should also have an effect on the discount to nav.
The deals like park are what drive the nav up as these assets are on the books at cost mostly and only show the progress of the teams management when sold.
Why these aren't £2800 or above I do not know.
I know the market doesn't like unquoted assets but these have a very good track record of releasing more that book value.
Obviously good news, but whereas elsewhere ( Electra) there has been a new board who have got rid of the old investment managers who were allegedly charging too much etc and embarked on a tender offer to return capital to shareholders. The family ownership is going to hold things back here - after all do the family want to receive more dividends ? Mind you I dont see why they cant do a tender offer to buy back shares at closer to NAV, the family don't have to tender their shares if they don't want to.
I realise that Electra isn't a direct comparator as Caledonia only have about 40% in unquoted, whereas at Electra it is 100%, but nevertheless it is interesting that Electra now trade at NAV or a small premium, presumably in response to the change of strategy and a realisation that unquoted investments may be undervalued on the balance sheet.
Nevertheless I'm happy to stick with Caledonia for the time being.
I was interested to see that they still own Sterling Industries - that brings back memories of assignments in Crewkerne !
Very happy with the progress made here,the sale of park so soon for such good returns is a surprise .The NAV is already past £30 a share at last count and with this deal it could be much more.
The discount to NAV is hard to control for Caladonia because they have to have special permission to repurchase there own shares as the family holding is so big.
NAV performance has dragged the share price up for a long time,I have seen in a article somewhere that the market doesn't really like unquoted assets as the valuations can be manipulated,but Calidonia keeps selling unquoted assets for much more than they are on the books for so I think they are very under valued.
How many more unquoted companies are worth much more than they are on the books for.
Caledonia have a pretty decent recent track record with their unquoted portfolio in the past few years, realising some fantastic rates of return on this part of the portfolio. In fact I'm more than happy with the investment 'pools' strategy adopted by Will Wyatt since he took over about 5 years ago. His immediate predecessor appeared to struggle and spent more time commenting on politics which resulted in a fairly random portfolio. Totally agree that the discount isn't going away any time soon due to the family factor but hopefully more days like today in the next 24 months.
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