# BLA - Blue Sky Alternative Investments



## System (21 January 2012)

Blue Sky Alternative Investments Limited (BLA) is a dedicated alternative investment fund manager with more than $180 million AUM across four asset classes: Private Equity, Private Real Estate, Hedge Funds and Water.

http://www.blueskyfunds.com.au


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## piggybank (18 May 2014)

Lived up to it's name on Friday - sort of!!


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## jbocker (10 September 2014)

I found this stock because I was looking for 'companies' that had water rights as assets, because I heard on an ABC article the future value of water was going to be huge. What that really means was a bit of a mystery to me.
Anyways the only thing I found back then (Jan 2013) was Blue Sky Alternative Investments. I took a small punt after reading up on the investment company. To date it served me well. the water rights assets under management does not feature as strongly as it did back then - it is under their Real Assets portfolio and I think is about 15% of the entire portfolio.

Is there anything else that is listed that is linked to 'Water Assets or Rights' that people are aware of?


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## skc (10 September 2014)

jbocker said:


> I found this stock because I was looking for 'companies' that had water rights as assets, because I heard on an ABC article the future value of water was going to be huge. What that really means was a bit of a mystery to me.
> Anyways the only thing I found back then (Jan 2013) was Blue Sky Alternative Investments. I took a small punt after reading up on the investment company. To date it served me well. the water rights assets under management does not feature as strongly as it did back then - it is under their Real Assets portfolio and I think is about 15% of the entire portfolio.
> 
> Is there anything else that is listed that is linked to 'Water Assets or Rights' that people are aware of?




I used to hold some BLA but sold it for reason unrelated to the stock... at about 40% below where it currently trades. BLA has plenty of growth potential, but at the same time, it isn't generating much cash flow (most profits are revaluation as opposed to "income". 

The other stock with water rights is Tandu... TAN.


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## jbocker (10 September 2014)

skc said:


> I used to hold some BLA but sold it for reason unrelated to the stock... at about 40% below where it currently trades. BLA has plenty of growth potential, but at the same time, it isn't generating much cash flow (most profits are revaluation as opposed to "income".
> 
> The other stock with water rights is Tandu... TAN.




Thanks SKC. Yeah I appreciate what you say, who knows how far it goes.
I did do a search again after I posted and came up with Tandou, Phoslock and WRG, the latter is near bust and is in the techo water treatment arena. WRG has a squillion shares and propped up by some who are encouraged by the tech and I think must have some money to keep it going. I would hope they also have the management to get it into a viable enterprise - which is the great lacking element in so many innovative ideas. 
Phoslock is about dumping something into the water that negates the phosphate and prevents blue green algae. It was developed by CSIRO - at the same location as my first job, about a billion years ago , which is cute, but not what I am after.
Tandou seem a far better proposition which I will read up on. it pays a divi, which is encouraging.


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## peter2 (2 May 2018)

This has been one hell of a ride.


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## HelloU (2 May 2018)

Hmmm, any nugget thoughts are for shoe polish. But the access fund may be a different matter.....macq nibbling there since december....every day.....rain or shine....not that macq treats u well in bed....that morning goodbye kiss can be a shocker....most recently atlas.....what do they call those liverpool kiss things....oh yeah...


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## greggles (8 May 2018)

What a schmozzle the Blue Sky Alternative Investments saga has turned out to be. I feel sorry for the investors who have been deliberately misled by BLA management. What a disaster. 

Not sure if this article is behind a paywall for some, but I am able to read it: http://www.afr.com/brand/rear-windo...ing-assets-proves-illusionary-20180507-h0zr8n


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## greggles (17 May 2018)

Piper Alderman are running a class action against Blue Sky Alternative Investments: https://www.piperalderman.com.au/class-actions/current-class-actions/blue-sky-class-action


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## notting (1 August 2018)

It's opportunities like this that I loooooooooooooooooooooooove.
Looks like nothing on the one year....






I bought 3 lots over the last fortnight and am still managing to sit on a 34% gain!
Taking a closer look is more interesting!......


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## HelloU (2 August 2018)

query @notting
you talking bounce-cat type interest (tech analysis), or the oaktree/macq thing? or do u think this has actual legs (would assume only with aforementioned help)......little brother baf was also offering cyclical trades recently (the coy themselves were gifting dates and prices for trade dates and pricing) but has altered a little in the last few days to become a little more uncertain......


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## notting (2 August 2018)

Fundamentally I think the selling was overdone. Even the shorters that brought this to the markets attention when it was at 5 something were only calling it down 2 or 3. So it was undervalued on any metric hence it caught my interest when appeared to be basing.  Subsequently there is someone running the ruler over it which was fortuitous.
Which brings AMP to mind!  Why on earth wouldn't someone buy it and get rid of the 'AMP.' damaged brand


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## HelloU (2 August 2018)

cheers
rept due by end august...would not be surprised if fair is less than $3...when a mgt team removes all forward data from the market, but then starts quoting % deviation (from data which is not available) in their many market updates then i shake my head........
btw...it was 11's odd when called out and response was nothing to see here.....but a few months later the story told by mgt changed to maybe something to see but we do not really know becuase we are just the managers.....????.......will need to throw money at someone else so they can tell us what we own..........hmmm.........current burn is 20 or 30 M or something a qtr and the only money they have is essentially from CR last Dec..........and not a whole lot left. Outs are more than ins atm. But then nobody really knows cos they will not say...........


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## notting (2 August 2018)

Sometimes there are juxtapositions from what the market is doing with a companies share price and what the managers do from day to day running the business!
This one likely got a fair bit ahead of itself.  
There's been some smart money moving in over the last 3 weeks from industry players as well.
So perhaps they have a better understanding of the model and it's performance potentials than most!


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## notting (2 August 2018)

Initially Glaucus's report drove shares of Blue Sky down 9 per cent to $10.40

They argued Blue Sky stock is over-valued, and worth no more than $2.66 a share!! (About 70% higher than where I was buying it!)

*Now for the dark side!!* -  Blue Sky is alleged to have overstated the amount of assets under management that are capable of earning fees, which Glaucus asserts is "at most $1.5 billion" and not the $3.9 billion the company reported at its February results. Central to its thesis is that Blue Sky has succeeded by "aggressively" marking up the value of unlisted assets so it can charge higher fees and flatter its returns, lifting its share price.

"This creates a feedback loop by which management can enrich themselves simply by pushing for the markup in value of unrealized investments,"  according to Glaucus.

The Brisbane-based fund manager upgraded its *fee earning* assets under management guidance in its interim results, which sparked the bigg rally in its shares  Then they raised $100 million at $11.50 a share. *Whoops
*
One of the points Glaucus made was that BLA reported 15 per cent internal rate of return after fees since inception in 2006, "if such returns are true, Blue Sky is one of the best asset managers in the entire world," the report says, concluding that it has only exited a small number of investments, citing 39, where most of them were residential property developments.

Well there is actually, potentially, not much too wrong with that if the properties are in Melbourne and Sydney!!  Markets which outsiders like Glaucus seem to continue have no idea about!
BLA's retired founder, Mark Sowerby, has a fair bit of respect in the industry and rubs shoulders with MQG type people and reckons  'This is a good business run by good people.'

Bottom line -

I recon there is a fair bit of of ramping up and ramping down from both these self serving companies.
So it's probably worth about 5 or 6 bucks! Unless BLA invested in WA and QLD real estate as apposed to Melbourne and Sydney.  Lets see what their 'unlisted portfolio' gets valued at by an independent auditor. (I wonder who they picked for that job?)


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## peter2 (12 August 2018)

Like many other break-outs in the current market, the price of BLA is back down to the BO level.


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## HelloU (12 August 2018)

couple of days out from report.....SP down.......book at less than $2..........already said full year is loss (after half year was $16M or $19M profit or something)......manage fee earning assets of $3,400,000,000-00 but cannot make enough money to pay any dividend.....bloke sold all his shares at over $11 (according to AustFinReview) before becoming Interim MD, currently holds zero stock, and as a former shareholder could not be tempted to buy back in even at $1-50. No performance/options as part of that package......just cash thanks. 

Has just entered the top 50 for shorts, so will bounce if it bounces i suppose..........


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## HelloU (13 August 2018)

HelloU said:


> couple of days out from report.....SP down.......book at less than $2..........already said full year is loss (after half year was $16M or $19M profit or something)......manage fee earning assets of $3,400,000,000-00 but cannot make enough money to pay any dividend.....bloke sold all his shares at over $11 (according to AustFinReview) before becoming Interim MD, currently holds zero stock, and as a former shareholder could not be tempted to buy back in even at $1-50. No performance/options as part of that package......just cash thanks.
> 
> Has just entered the top 50 for shorts, so will bounce if it bounces i suppose..........



one day later and dump........ to book (if at all known).....and little brother BAF keeps on saying how good the weather is.......puts still extant on fall.....maybe......is it worth a punt for ann tommoz?


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