Hi OB; nice write up, and as a commentator before has side, rare analysis of small caps. And my you do like your small small caps!
Some thoughts: gut feeling, thanks for highlighting this, as yes Luceco pretty much covers your purchase price. Cash generative, profitable and yielding a dividend back of about 3% of EPE. I particularly like the Whittards holding, which has a panache, and must be able to yield high margins if managed/positioned well.
My only concern is the fees - managed and owned by the partners, the structure is generous/expensive proportionately. Yes, if you are outperforming, I'm happy to give up a chunk of my notable gains, but 8%ish return is hardly blowing (Luceco's) lights out. The feel structure almost seems such that they are more interested in maintaining NAV at at £100m+ than returning that to shareholders. Ditto, the large cash holding, which generates additional fees.
I do like this stock, but I'm mixed on whenever progress is being funnelled/stymied be the mgmt fee structure.
Interesting analysis. I've held this for about 3 years and am down over 50% since that time. It had a short period that was most successful when Luceco was doing well. I find it a bit opaque and hard to find out what's going on in the underlying portfolio.
Any idea how much skin in the game the directors or managers have?
Well, as the owner/investment mgrs, at least £10m looking at the (accumulated) earned/retained fees...and juat doing a quick Google, and Giles Brand the managinf partner owns c 38%
Fabulous writing. Can you review RBG Holdings as well? Now with all legacy business cleared up and Rosenblatt back at the helm, could you provide a view on what the topline & bottomline may look like in the next 2-3 years? Is it a potential 5-10 bagger?
OB; totally agree on the zeros, and looking at their holdings, and their cash generation, feel there is zero chance of them not being paid, would suit a (patient) income seeker.
Hi OB; nice write up, and as a commentator before has side, rare analysis of small caps. And my you do like your small small caps!
Some thoughts: gut feeling, thanks for highlighting this, as yes Luceco pretty much covers your purchase price. Cash generative, profitable and yielding a dividend back of about 3% of EPE. I particularly like the Whittards holding, which has a panache, and must be able to yield high margins if managed/positioned well.
My only concern is the fees - managed and owned by the partners, the structure is generous/expensive proportionately. Yes, if you are outperforming, I'm happy to give up a chunk of my notable gains, but 8%ish return is hardly blowing (Luceco's) lights out. The feel structure almost seems such that they are more interested in maintaining NAV at at £100m+ than returning that to shareholders. Ditto, the large cash holding, which generates additional fees.
I do like this stock, but I'm mixed on whenever progress is being funnelled/stymied be the mgmt fee structure.
Minor point, their holding in Denzel is 18%
Great analysis!. But: AIM-listed, Bermuda-domiciled (good luck minority shareholders!). No idea how you'll realise the upside in the ords....
Interesting analysis. I've held this for about 3 years and am down over 50% since that time. It had a short period that was most successful when Luceco was doing well. I find it a bit opaque and hard to find out what's going on in the underlying portfolio.
Any idea how much skin in the game the directors or managers have?
Well, as the owner/investment mgrs, at least £10m looking at the (accumulated) earned/retained fees...and juat doing a quick Google, and Giles Brand the managinf partner owns c 38%
Thanks for that. That's actually a really large holding.
Dear Oak Bloke
Fabulous writing. Can you review RBG Holdings as well? Now with all legacy business cleared up and Rosenblatt back at the helm, could you provide a view on what the topline & bottomline may look like in the next 2-3 years? Is it a potential 5-10 bagger?
OB; totally agree on the zeros, and looking at their holdings, and their cash generation, feel there is zero chance of them not being paid, would suit a (patient) income seeker.