PICK OF THE MONTH: Sandown Capital
The portfolio — or a good slab of the holdings — is deemed ‘inherited’ investments that could be sold off
It’s not often that we punt a small, newly-listed company as Pick of the Month — but Sandown Capital, which listed towards the end of 2017, is an intriguing prospect. Sandown, spun out of financial services company Peregrine, contains local and offshore hedge fund businesses, listed and unlisted offshore property holdings, and cash holdings (held mainly offshore). There is also a small (indirect) 7.5% stake in JSE-listed industrial services business Consolidated Infrastructure Group (CIL), which probably caused more consternation at Sandown’s listing than was really necessary. Prelisting documentation showed Sandown’s intrinsic NAV at the end of October was R1.265bn, or 560c/share. The share price at the time of writing was about 350c for a market value of about R800m. That means the shares offer a discount of about 37%. On paper, this looks rather attractive. The market’s misgivings around Sandown seem to stem mostly from concerns around the fee structure to the investment manager,...
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