QuotedData’s morning briefing 2 September 2020

In QuotedData’s morning briefing 2 September 2020:

  • Temple Bar (TMPL) briefed that as per their announcements on 20 April and 9 June 2020, the board has instigated a review of the management arrangements. They anticipate that this review will be completed shortly, and the publication of the interim results has been delayed in order to publish the results of the review and the interim results together.
  • The events driven hedge fund company, Third Point Investors, (TPOU) reported interim results to 30 June 2020. The USD share class delivered a NAV return of (6.6%). Highlights from the performance review section included:
    • TPOU’s manager substantially reduced equity exposures after the sell-off began, re-allocating capital to new opportunities in structured and corporate credit securities, doubling its overall credit exposure.
    • The manager made a series of opportunistic entries into new positions including Alibaba, JD.com, Amazon and Disney. These purchases had the effect of substantially mitigating losses experienced in the first quarter.
    • The existing activism portfolio performed well during the period, and the manager maintained a significant allocation to single-name short positions, even as markets rallied.
  • NB Global Floating Rate Income (NBLS/NBLU) announced half-year results to end-June 2020. The total NAV return for the period was (6.93%) for the sterling share class and (5.47%) for the USD class. The company will hold an EGM on 8 September, with chairman, Rupert Dorey, noting:
    • “We have proposed to amend the company’s investment policy to allow the company to invest in a wider range of credit assets, including alternative credit, thereby increasing the expected yield from the portfolio whilst leveraging the breadth of the manager’s global platform and to support a move to pay income to shareholders on a monthly basis. The recent backdrop of equity dividend cuts and reductions in bond yields has heightened income investors’ needs for a portfolio designed to deliver predictable, monthly income at attractive levels. The company will retain its ability to invest in senior secured, floating rate loans but will also be able to invest in a broad range of other credit assets, including but not limited to high yield and investment-grade bonds and alternative credit comprising of distressed debt, mezzanine debt and private corporate loans. Protection of capital will remain of paramount importance.”
  • EPE Special Opportunities (ESO) completed a £1.9m investment in Atlantic Credit Opportunities (ACOF). ACOF is a commingled distressed credit fund targeting a gross annual return of 10-12%. ESO will look for this investment to generate uncorrelated returns through exposure to the significant dislocations in credit markets caused by the pandemic.

We also have articles on a potential IPO worth up to £100m by Tellworth British Recovery & Growth, an update from Jupiter Green ahead of its continuation vote, and maiden interim results from Nippon Active Value.

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