NGI - Navigator Global Investments

[scsl]

does anyone own or have held HFA shares?

i was lucky enough to get some shares in the IPO, as a MFS shareholder. (MFS owned HFA before the float and holds 39% of shares.)

HFA shares were offered at $1.10 and ended the first day of trading (28 april 2006) at $1.39. they closed at $1.80 on 21 july.

HFA Holdings is an "absolute return fund of fund manager" with $2.5 billion under management. a "fund of fund manager" is a fund manager investing in other existing funds providing diversification across asset classes, strategies and management talent. it may also implement direct strategies. "absolute return" implies the fund is seeking to make positive returns in any situation, not simply trying to outperform a given index.

seeing that i've read about hedge funds being a very high growth sector, i'm curious if any of you have absolute return funds as part of your investments or superannuation.

i rang and spoke to the company secretary a few days ago and she seems very confident about HFA's prospects and expects to announce results on 17-18 august.

cheers,
scsl

 

[scsl]

HFA reported its debut full year results today.

They managed to increase Funds Under Management by 113% and Assets Under Management by 131%. Revenue was up 160% on the previous year to $35.4 million, contributing to an 850% increase in EBIT to $11.4 million.

The figures above all outperformed forecasts from the IPO prospectus.

The post tax net result was a loss of $10.8 million - but this was due to a one-off cost of $19 million associated with the HFA Employee Share Plan.

I am very confident of HFA's outlook and today's result only reinforce my view that HFA is in a very fast growing sector of the Australian wealth management industry.

HFA ended the day up almost 3%. (Hopefully, I can talk more about the result and outlook when I have more time this weekend.)

 

[michael_selway]

HFA reported its debut full year results today.

They managed to increase Funds Under Management by 113% and Assets Under Management by 131%. Revenue was up 160% on the previous year to $35.4 million, contributing to an 850% increase in EBIT to $11.4 million.

The figures above all outperformed forecasts from the IPO prospectus.

The post tax net result was a loss of $10.8 million - but this was due to a one-off cost of $19 million associated with the HFA Employee Share Plan.

I am very confident of HFA's outlook and today's result only reinforce my view that HFA is in a very fast growing sector of the Australian wealth management industry.

HFA ended the day up almost 3%. (Hopefully, I can talk more about the result and outlook when I have more time this weekend.)

if HFA does well, does that mean MFS does well?

thx

MS

 

[scsl]

if HFA does well, does that mean MFS does well?

thx

MS

MFS certainly benefits from HFA's outperformance of prospectus forecasts, and in more ways than one.

MFS still retains a significant 38.7% holding in HFA (78 076 173 shares according to HFA's financial report). This values its stake at about $147 million, up over 70% in 4 months. The announced fully franked special dividend of 1.5 cents per share means that MFS will receive approx $1.2 million.

Also, I think that MFS's reputation as an up and coming investment and financial services group will be given a further boost. MFS, which bought HFA for approx $3 million less than 3 years ago, should be given credit for the way it has significantly grown HFA's value and put it on a rapid growth profile.

The highly successful nature of the IPO will mean that MFS should find it easy to attract investors in the future, when it 'offloads' more assets into listed/unlisted vehicles, much like the way MacBank handles it.

cheers,
scsl

 

[scsl]

HFA today broke through the $1.90 level that it has been testing for one and a half months. It spent most of the day above this level, reaching a high of $1.95 just after 1 o'clock. I have been anticipating this break above resistance and think that a close above $1.90 would be very bullish.

I reiterate that HFA is very much favoured by the brokers that cover it, with huge growth potential in at least the next 2-3 years. Please do your own research on HFA.

 

[scsl]

With the Aussie market performing the way it is, I have no doubt that investors will seek out hedge funds for less volatile and more consistent returns in both rising and falling markets. Being a major player in the Australian hedge fund market, HFA will benefit from the large amounts of funds flowing into this sector. Also, investors will prefer HFA because as a fund of fund manager, it provides instant diversification and active management by an expert in fund selection.

Some of you may point to the recent closure of a hedge fund in America because of bets on enegy prices gone wrong, but frankly, the majority of hedge funds worldwide are not stupid enough to put a large portion of their money into the one investment.

I know it sounds like I am really talking up the stock, but that's exactly it - I am VERY confident of HFA's future potential.

With HFA off its recent highs, it is an excellent opportunity to buy.

 

[rhombus]

This crowd pinged off the last couple of days. Think there was an article on today tonight or something.

 

[numbercruncher]

HFA NET SHORT US SUB PRIME SECTOR

In light of recent events in global and domestic equity, bond and credit markets, and the global liquidity crunch, HFA Asset Management would like to clarify the position of its funds, with respect to these issues and in particular to clearly articulate HFA’s exposure to US Sub Prime and CDO’s (collateralised debt obligations) across its funds.


Firstly, it is important to note that the hedge funds and the traditional fund managers that have suffered significant losses or a significant lack of liquidity, have been those managers that have pursued a single investment strategy that had a specific net long exposure to CDO’s and RMBS (residential mortgage backed securities).


This particular segment of the hedge fund universe is a very low percentage of the total hedge fund industry. Therefore readers should be aware that the recent media speculation of hedge fund losses does not affect the entire hedge fund industry, but rather only a small portion of the over 7000 hedge fund managers who collectively manage in excess of an estimated US$2 trillion on behalf of Institutional, High Net Worth and Retail investors.

HFA Asset Management is an absolute return fund of fund provider with in excess of A$3.8 billion in assets under management. The HFA stable of funds are all absolute return fund of hedge funds, which are diversified across multiple managers and multiple strategies. This high level of manager and strategy diversification provides an inherent level of protection for investors against any adverse market gyrations within any specific market segment including equity bond and credit markets.

The US Sub Prime collapse comes as no surprise to HFA. Investors and advisers who have attended any of our investment briefings over the past 2 years will be well aware that Jonathan Pain (HFA Chief Investment Strategist) had been warning of the current situation for some time. To that end our portfolios have been positioned in anticipation for the current US Sub Prime situation. The recent market movements in this segment have only served to validate our existing views.

http://www.allfinancialservices.com.au/financial-articles/hfa-net-short.php


Im in there geared accelerator fund (hap) and found this ann. yesterday interesting.

4. Details of present registered holders: additional information
The Carrousel Fund Ltd
The Carrousel Fund II Ltd
- Bear Stearns International Ltd
- Citigroup Global Markets Ltd
- Bear Stearns International Ltd
- Citigroup Global Markets Ltd
Nbr. of securities
7,392,555
2,119,982
1,848,134
527,715
5. Consideration: additional information
Holder of relevant
interest
Date of
acquisition
Consideration
Cash
noncash
Class and Nbr. of securities:
Ordinary
The Carrousel Fund Ltd
12/07/07-31/07/07
01/08/07-10/08/07
17/08/07-31/08/07
01/09/07-05/09/07
1.29
1.17
1.12
1.13
571,834
345,858
327,167
255,271
The Carrousel Fund II Ltd 12/07/07-31/07/07
01/08/07-10/08/07
17/08/07-31/08/07
01/09/07-05/09/07
1.29
1.17
1.12
1.13
142,958
86,464
81,792
63,818


Hopefully be some good NTA monthly announcemets coming up !

 

[nikkothescorpio]

Down over 40% today and why?

Is this a debt related matter or what? I can't see any announcements that'd link me to an answer.

I do hold.

 

[ormond]

Talk about a massive over reaction.
Speculation of a potential sale bt MFS group of its 12% holding in HFA.
From oct 1 lighthouse partners diversified fund delivered a positive return of 1.5%.The LHP long short equity fund delivered a negative return of less than 1.9%.
Seems like its death by assosiation rather than looking at the basic fundamentals so will top up tommorow in this well run company.

 

[scsl]

Here's some info I've collected on HFA recently:

- The share price plunge (it touched 71 cents on 21/1/08) was because of concerns of HFA's connections to MFS, with MFS' margin call exacerbating it. In the process, MFS now only holds 0.23% of HFA. Down from 40m shares (8.6%).

- The absence of this MFS share overhang may potentially allow HFA's share price to 'move on' from the negativity.

- Net funds flow across HFA products has been positive every month this financial year and there has been no unusual redemption activity (unlike MFS's $770m Premium Income Fund, which has had to freeze all redemptions).

- Fund inflows so far in FY08 stand at $200m. (In the year to 30/6/07, FUM increased 47% to $1.56b.)

- Despite being initially delayed due to credit conditions, there has been rapid satisfaction of the merger. The merger was expected to be completed in early Jan.

I used to hold. But am now looking to buy. I am looking forward to 1H 2008 announcement, which will provide more clarity.

Regards,
scsl

 

[vishalt]

I wonder if HFA's funds are getting a lot of redemptions simply because of the MFS connection.

I didn't even know MFS had a holding in it!

 

[the bard]

Anyone know why HFA plunged 47% today, no news, big volume, what the? I have done a bit of a look around, nothing to be found news wise, if somebody knows something and they are not telling me, they will be in big trouble!

 

[BMTT88]

Down 55% today on huge volume. Current market cap of 15 mill, would their management fees far exceed this? oversold?

 

[aazar]

They are freezing redemptions on their funds. Don't touch. Go and buy some decent blue chip stocks instead unless you don't mind losing all your capital.

 

[BMTT88]

Pretty much anybody who wasn't covered under the government guarantee froze their funds. Its a good move on their part to preserve their management fees since this is based on total funds under management.

 

[mfp]

They are freezing redemptions on their funds. Don't touch. Go and buy some decent blue chip stocks instead unless you don't mind losing all your capital.

Made 25% on this on xmas eve. Noticed the successful retest of the previous day's low @ 3.9c and buyers building @ 4c. Bought 200,000 @ 4c, sold @ 5c average 2 hours later (4.7c and 5.3c). Just for another little flutter re-entered with 100,000 near close @ 4.8c, closed @4.9c. Prior to this had never heard of the stock before.

 

[my03]

sorry to ask such newb questions but is this stock a good option for medium-long term 1-3 years? will it ever get back to what it was before?

 

[4eyesnb]

devoured 435,000 shares at 0.042, spit 150,000 at 0.05 next day.

wait for tomorrow, see if i can get more

 

[mfp]

Made 25% on this on xmas eve. Noticed the successful retest of the previous day's low @ 3.9c and buyers building @ 4c. Bought 200,000 @ 4c, sold @ 5c average 2 hours later (4.7c and 5.3c). Just for another little flutter re-entered with 100,000 near close @ 4.8c, closed @4.9c. Prior to this had never heard of the stock before.

Sold again on open @ 5.5c. A little more patience would have gotten me 6c, but I'm pretty satisfied with my double trade, and the fact that it is currently at its day low of 5.2c makes me fairly confident the run is over.