MARC HASENFUSS: How HCI can make a bigger Impact
A lack of detail from the investment company means the discount to NAV has to be a matter of inference
Hosken Consolidated Investments (HCI), unlike other investment companies, does not exactly go out of its way to help investors value the underlying portfolio. The latest interim results provide performance measures in the form of revenue, earnings before interest, tax, depreciation and amortisation (ebitda), profit before tax and headline earnings — as well as commentary on the various investments.
But what is not provided is a detailed breakdown of the investment portfolio’s NAV. What HCI refers to as the “net asset carrying value per share” is reflected at R232.60 a share, which means the share price — at the time of writing — was offering a discount of about 25%. That is perhaps relatively palatable, considering that the default investment company, Remgro, has seen a much wider discount in recent months...
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