Deep Value Investing by Jeroen Bos

Author:Jeroen Bos
Language: eng
Format: epub
Publisher: Harriman House
Published: 2013-03-12T16:00:00+00:00

OUTCOME

On 27 March 2013 the company released an announcement regarding ‘Partial disposal of the Hyperion investment and trading update’. The company would receive a £29.2m cash consideration for the partial disposal of its remaining holding in Hyperion.

As we had bought in on the strength of this holding, we sold our shares in B.P. Marsh & Partners in April 2013 at 130p (a 49% profit). Although the NAV was still materially higher than the-then share price, I felt that the rest of the portfolio would take some time to mature. The main event had been the Hyperion investment.

It always surprises me what you find when looking for stocks trading at large discounts to their net asset value. Of course, lots of these companies have issues and it is difficult as an outsider to judge whether they can be turned around in order to close that NAV gap after you’ve bought in. But you can find other interesting companies like B.P. Marsh & Partners, where the matter is rather easier to judge.

Once found, it may still take some time before they start to perform positively. Patience is a double-virtue in value investing. After buying in it is simply a question of checking their balance sheets, watching for big losses (small losses are okay), keeping an ear out for anything positive in company releases or in the sector at large – and waiting.

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