Thanks for the write up I went through it a few weeks ago but held off buying as don’t love the top stock Atom bank and I’m already full of challenger banks (although I do love the sector) with direct holdings in Monzo and Revolut.
However, an article I came across today made me give it a second look.
This shows there is firm interest in the stock at the most recent valuation. Possibly even an opportunity for INOV to offload. That gives me comfort on this name.
Revolut is 100% worth the 45bn with GS negotiating more stock sales to their private clients at this price post the secondary employee sale.
My biggest concern is the continuation vote. I just don’t have any idea how this plays out in practice if shareholders vote for wind up. Does this leave shareholders in a Woodford style situation where holdings will be fire sale’d and fees will be charged to handle the process. This just doesn’t seem like it will end well if that’s the case (even if the holdings are sound). Can anyone provide insight into what a failed continuation vote looks like in practice for a fund like this?
If the continuation vote is to wind up then that means no further investments (other than those contracted) and certainly no new investments. The method is usually to "achieve realisations in the best interests of shareholders" balancing speed and value. Existing fees/costs continue to be charged.
I'd agree on Revolut and the recent 50m customers milestone is further evidence of this. Am not aware of any Trust which holds Monzo so well done for finding a way to invest into that. You might be interested in reading my article Starling vs Monzo (https://theoakbloke.substack.com/p/a-more-interesting-world-with-starling)
Thanks for the reply. I like the portfolio a lot. Just not sure I like it in a wind down scenario as everything will probably be flogged off at discounts. Could definitely make some money out of this portfolio if you had the cash to buy the portfolio outright and be patient with winding it down and managing the exits. The issue in my mind is the fund managers won’t have their incentives aligned with investors and a large group of investors will just want the cash back quickly if continuation vote fails.
How about the most unloved share? Probably better choices but potentially Nanoco, it’s mcap is around its cash position last I checked, so its IP is essentially free. The accounts are held back this year, but expecting EBITDA of £0.6m
Thanks for the write up I went through it a few weeks ago but held off buying as don’t love the top stock Atom bank and I’m already full of challenger banks (although I do love the sector) with direct holdings in Monzo and Revolut.
However, an article I came across today made me give it a second look.
https://news.sky.com/story/former-chase-uk-boss-swoops-on-atom-bank-stake-13253048
This shows there is firm interest in the stock at the most recent valuation. Possibly even an opportunity for INOV to offload. That gives me comfort on this name.
Revolut is 100% worth the 45bn with GS negotiating more stock sales to their private clients at this price post the secondary employee sale.
My biggest concern is the continuation vote. I just don’t have any idea how this plays out in practice if shareholders vote for wind up. Does this leave shareholders in a Woodford style situation where holdings will be fire sale’d and fees will be charged to handle the process. This just doesn’t seem like it will end well if that’s the case (even if the holdings are sound). Can anyone provide insight into what a failed continuation vote looks like in practice for a fund like this?
Many thanks as always!
Hi Gordon
If the continuation vote is to wind up then that means no further investments (other than those contracted) and certainly no new investments. The method is usually to "achieve realisations in the best interests of shareholders" balancing speed and value. Existing fees/costs continue to be charged.
I'd agree on Revolut and the recent 50m customers milestone is further evidence of this. Am not aware of any Trust which holds Monzo so well done for finding a way to invest into that. You might be interested in reading my article Starling vs Monzo (https://theoakbloke.substack.com/p/a-more-interesting-world-with-starling)
OB
Thanks for the reply. I like the portfolio a lot. Just not sure I like it in a wind down scenario as everything will probably be flogged off at discounts. Could definitely make some money out of this portfolio if you had the cash to buy the portfolio outright and be patient with winding it down and managing the exits. The issue in my mind is the fund managers won’t have their incentives aligned with investors and a large group of investors will just want the cash back quickly if continuation vote fails.
How about the most unloved share? Probably better choices but potentially Nanoco, it’s mcap is around its cash position last I checked, so its IP is essentially free. The accounts are held back this year, but expecting EBITDA of £0.6m
Intriguing. Not one I've ever looked at. Ah yes Quantum dots.