TFG:NA TFG:LN TFGS:LN
Since we’re talking abt #TetragonFinancial:
Soon it’ll be 5 yrs since tht infamous Forbes clean slate/#altasset IPO article...
...and basically it’s been crickets since:
google.com/amp/s/www.forb…
So what’s the deal?!
Since we’re talking abt #TetragonFinancial:
Soon it’ll be 5 yrs since tht infamous Forbes clean slate/#altasset IPO article...
...and basically it’s been crickets since:
google.com/amp/s/www.forb…
So what’s the deal?!
Well, NO complaints from an operating perspective:
#TFG delivered 10% NAV returns in last 5 yrs & transitioned to a true #altasset mgmt firm...
...ignore rest of the portfolio, it’s jst surplus filler they’ve jammed into Polygon funds/addtl seed capital for its asset mgmt co’s.
#TFG delivered 10% NAV returns in last 5 yrs & transitioned to a true #altasset mgmt firm...
...ignore rest of the portfolio, it’s jst surplus filler they’ve jammed into Polygon funds/addtl seed capital for its asset mgmt co’s.
And forget #redherrings like #Ripple...
...blame me, cos I pushed ‘em to add some #crypto #pixiedust to the portfolio, but I never expected it wd be Ripple! 😆
Bt this is MORE than balanced out by their asset mgmt jewel in the crown...
...#Equitix, now their largest hldg!
...blame me, cos I pushed ‘em to add some #crypto #pixiedust to the portfolio, but I never expected it wd be Ripple! 😆
Bt this is MORE than balanced out by their asset mgmt jewel in the crown...
...#Equitix, now their largest hldg!
#Equitix is an incredible #infrastructure biz & given right mgmt/resources it has absolutely HUGE pot’l ahd...and I mean globally, not jst UK/Europe:
equitix.co.uk
In fact, I gotta wonder if Equitix (& TFG shrhldrs) are best served ultimately by a stand-alone #IPO...
equitix.co.uk
In fact, I gotta wonder if Equitix (& TFG shrhldrs) are best served ultimately by a stand-alone #IPO...
But yeah yeah, I know...nobody wants to talk abt the #TFG biz/NAV/portfolio, so chk it out for yrself:
tetragoninv.com
‘Cos here we are 5 yrs later, with no peep of an #IPO & the usual/extraordinarily wide 30-50% NAV disct has now widened to a 60%+ disct...
tetragoninv.com
‘Cos here we are 5 yrs later, with no peep of an #IPO & the usual/extraordinarily wide 30-50% NAV disct has now widened to a 60%+ disct...
So...wen #IPO ser?!
Well, we gotta thk abt incentives:
While I was 100% correct mgmt’s eye is now on a bigger prize & is incentivized NOT to screw investors...
...for long-suffering shrhldrs (to whom #TFG’s NAV is now an abstract concept) it still feels like getting screwed!
Well, we gotta thk abt incentives:
While I was 100% correct mgmt’s eye is now on a bigger prize & is incentivized NOT to screw investors...
...for long-suffering shrhldrs (to whom #TFG’s NAV is now an abstract concept) it still feels like getting screwed!
And there’s NO redemption coming from dividends/stk buybacks...
Div cut is excusable...prior high dividend level was basically a run-off legacy of TFG’s old identity as a #CLO portfolio, so the cut was no surprise.
Same can’t be said for buybacks, NOW they’re off the table...
Div cut is excusable...prior high dividend level was basically a run-off legacy of TFG’s old identity as a #CLO portfolio, so the cut was no surprise.
Same can’t be said for buybacks, NOW they’re off the table...
Cos #TFG went from $100s/millions of net cash to a 4% net debt position today...
...tht you can bet mgmt believes is an entirely reasonable excuse for NO further buybacks...
...despite TFG now having $100s/millions in #eventdriven inv’ts tht cd be liquidated in mths/if not wks!
...tht you can bet mgmt believes is an entirely reasonable excuse for NO further buybacks...
...despite TFG now having $100s/millions in #eventdriven inv’ts tht cd be liquidated in mths/if not wks!
And tht’s NOT even the most infuriating aspect for shareholders...
...cos obviously there’s NO inv’t on earth tht can offer the same risk-reward as retiring #TFG shares at a 40-60%+ NAV disct!
Somehow Paddy forgot to address that aspect on the last conference call...
...cos obviously there’s NO inv’t on earth tht can offer the same risk-reward as retiring #TFG shares at a 40-60%+ NAV disct!
Somehow Paddy forgot to address that aspect on the last conference call...
Clrly, default incentive now is to keep #statusquo & milk #TFG for comp/fees from (ext’l) mgmt contract*...
...rem mgmt dsn’t care abt stk price today, cos they can ultimately cash out at NAV/better at a time of their choosing.
*Which idiot shareholders embraced in ‘07... 🙄
...rem mgmt dsn’t care abt stk price today, cos they can ultimately cash out at NAV/better at a time of their choosing.
*Which idiot shareholders embraced in ‘07... 🙄
And btw Paddy Dear gets all the brickbats...
...but it’s actually Reade Griffith (who dsn’t even do the investor stuff..!?) who’s in the driving seat here, as the dominant #TFG shareholder today!
...but it’s actually Reade Griffith (who dsn’t even do the investor stuff..!?) who’s in the driving seat here, as the dominant #TFG shareholder today!
But, but...there’s still a much bigger prize out there!
Owners/employees now own 35% of #TFG, basically its current mkt cap...e.g. seeing the portfolio inv’ts valued at 1x book & the operating biz valued on a NY-listed #altasset mgmt co multiple wd be a HUGE prize, right?! 🤯🤑
Owners/employees now own 35% of #TFG, basically its current mkt cap...e.g. seeing the portfolio inv’ts valued at 1x book & the operating biz valued on a NY-listed #altasset mgmt co multiple wd be a HUGE prize, right?! 🤯🤑
Why not go for it?!
There must be a stupid/greedy stumbling block, but it isn’t all tht obvious to shareholders...
...and I thk it boils down to the current share structure & external inv’t mgmt agreement (rem, for #TFG itself...#Polygon was actually previously internalized).
There must be a stupid/greedy stumbling block, but it isn’t all tht obvious to shareholders...
...and I thk it boils down to the current share structure & external inv’t mgmt agreement (rem, for #TFG itself...#Polygon was actually previously internalized).
Don’t under-estimate how greedy/entitled this mgmt can be...
...and the real #TFG bet I still want to make is to harness tht greed ON BEHALF of investors...
...ie perfect alignment btwn mgmt & shareholders, BUT tht req’s obvious changes & a completed #pureplay #altasset #IPO!
...and the real #TFG bet I still want to make is to harness tht greed ON BEHALF of investors...
...ie perfect alignment btwn mgmt & shareholders, BUT tht req’s obvious changes & a completed #pureplay #altasset #IPO!
Meanwhile, I suspect mgmt’s obdurately wedded to the idea:
- Internalizing #TFG mgmt contract...except the number’s far too big & too embarrassing!
- Retaining the dual-share control structure.
and/or
- Retaining the ext’l comp agreement post-#altasset mgmt co #IPO!
- Internalizing #TFG mgmt contract...except the number’s far too big & too embarrassing!
- Retaining the dual-share control structure.
and/or
- Retaining the ext’l comp agreement post-#altasset mgmt co #IPO!
Talk abt having yr cake & rolling ‘round in it... 🎂🐷🙄
‘Course, in the real world none of these are palatable, or even necessarily possible...to current or pot’l shareholders, or to any reputable sponsor.
And so...we’re stuck w/the current #letsjustmilkthecow situation. 🐮🤑
‘Course, in the real world none of these are palatable, or even necessarily possible...to current or pot’l shareholders, or to any reputable sponsor.
And so...we’re stuck w/the current #letsjustmilkthecow situation. 🐮🤑
But but, long-term 10%+ NAV returns & a 63% NAV disct* can STILL offer (more than ever! 😂) a compelling IRR...
...IF something changes!
*Cos it’s NOT hard to see #TFG trade at/near book in a different scenario...or w/ different mgmt, if you can envisage a pot’l buyer!?
...IF something changes!
*Cos it’s NOT hard to see #TFG trade at/near book in a different scenario...or w/ different mgmt, if you can envisage a pot’l buyer!?
At this pt, we shd believe it when we see it...
...which I why I’ve more recently counseled buying/adding to #TFG on news (or an actual #catalyst), rather than simply on price.
AND we can’t ignore the big picture here...
...the US mkt is 🔥 🔥 🔥!
...which I why I’ve more recently counseled buying/adding to #TFG on news (or an actual #catalyst), rather than simply on price.
AND we can’t ignore the big picture here...
...the US mkt is 🔥 🔥 🔥!
In almost EVERY sector, there’s a huge trans-Atlantic relative val’n gap in favour of the US, there’s been a tsunami of #IPOs/#SPACs/fundraising...
...AND notably the #altasset firms are now in the 5th year of a real bull mkt, that actually accelerated for them last yr!
...AND notably the #altasset firms are now in the 5th year of a real bull mkt, that actually accelerated for them last yr!
So the bigger prize dangling in front of #TFG mgmt keeps getting bigger & BIGGER...
...and harder & harder to resist!?
And internalization & collapsing the dual-share structure CAN be achieved for negligible comp, IF mgmt’s willing...we’ve seen plenty of examples in the mkt.
...and harder & harder to resist!?
And internalization & collapsing the dual-share structure CAN be achieved for negligible comp, IF mgmt’s willing...we’ve seen plenty of examples in the mkt.
I suspect the recent #Tetragon Acquisition Corp #SPAC #IPO filing is a way for mgmt to #betatest the NYC listing waters...
...and appointing #Jeffries as a joint broker (the fact it’s their London sub is a red herring) is all part of this feeling-out process too.
...and appointing #Jeffries as a joint broker (the fact it’s their London sub is a red herring) is all part of this feeling-out process too.
Soooo...plenty there for ALL the #TFG optimists, pessimists & haters!
No rants please, BUT if you have any different/alt. theories abt how we ended up here/haven’t seen an #altasset #IPO yet...I’m all ears?
And keep ALL this in mind for the next conf. call... 😉😂
Discuss!
No rants please, BUT if you have any different/alt. theories abt how we ended up here/haven’t seen an #altasset #IPO yet...I’m all ears?
And keep ALL this in mind for the next conf. call... 😉😂
Discuss!
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