PTM - Platinum Asset Management

[Miner]

I sold out late last year on the basis that all the traditional fund managers are struggling with the shift to indexing, PTM in particular because they have been holding a lot of cash waiting for a pull back that hasn't come. Kerr has lost his touch.

Thanks So Cynical.
I have again reviewed PTM performance and would like to wait now.

 

[AUSG]

Kerr Neilson announces he's stepping down. The stock tanked

http://www.smh.com.au/business/bank...-kerr-neilson-steps-down-20180222-p4z1ay.html

 

[greggles]

Anyone know why Platinum Asset Management is tanking so badly today? Is it the hand over from Kerr Neilson to Andrew Clifford or is there some other reason? 8.5% is a substantial fall in share price. Just wondering if there is something that I'm not aware of.

$5.25 looks like support, so it will be interesting to see if it bounces off that level or keeps heading down.

 

[notting]

MFG another fund manager is having a bad day too down around 7%. No news either!
Not sure.

 

[Mr Bear]

30 June is a big date for fund managers, even though yearly performance is available at each month end the year to 30 June is researched in more detail once final distributions and performance is cut.

So bit of news today:

Platinum international fund active down 3-4% in June and at benchmark or below over 1, 3 and 5 years (5 being the most important number).

Both continue to see weak retail and insto flows announced in research from Morgan Stanley and Credit Suisse today.

MS cut Magellan to underweight target $20, Credit Suisse Change to outperform target $28. I highlighted how broker targets are useless in my post last night, glad there is an example straight away.

PTM - Credit Suisse cut them to underperform. Target 5.25.

Overall fund flows are weak in an already expensive market while in the background there is fee compression going on across the industry, more bearish than bullish overall.

 

[notting]

Jesus Christ/ What they expected fund flows to be strong whilst trade spats are breaking out all over the place?
The Trump thing is starting to take casualties and it could get messy for real! Simply because people are going to genuinely lose confidence, not just hold fire for a bit, as they have done so far!

 

[bigdog]

https://au.finance.yahoo.com/news/platinum-asset-management-co-founder-202731496.html

Platinum Asset Management co-founder to sell $300 million of shares

James Mickleboro
Motley Fool 20 March 2019

Platinum Asset Management Ltd (ASX: PTM) share price will be on watch this morning after the asset manager revealed that its co-founder and controller was offloading a significant number of shares.

According to the release, Mr Kerr Neilson, the co-founder and controller of Platinum Asset Management, has advised of the proposed disposal of shares by way of a fully underwritten offer to institutional and professional investors.

A total of 30 million ordinary shares held by Mr Neilson and 30 million more shares held by Mrs Judith Neilson will be sold via the offer, representing 10% of the company’s issued share capital.

The release explains that the sale will be made via an off-market bookbuild at a sale price of $5.00 per share, compared to the last close price of $5.50.

Both Mr and Mrs Neilson will retain a significant number of shares in the company after the sale, giving Mr Neilson voting control over 42.97% of the company’s issued share capital.

Mr Neilson explained that the sale will allow the pair to direct some of their capital towards other pursuits.

He said: “We are reducing our interests in the Company that was founded some 25 years ago. The partial disposal of our interests allows us to direct some of our capital towards other pursuits, particularly those that relate to the arts and philanthropy, as well as diversifying our personal investments.”

No further share sales will be undertaken during the next 12 months.

Should you be concerned?
I think it is completely understandable why the Neilsons would be offloading shares and would not be concerned if I were a shareholder.

However, due to the discount that the shares are being sold at, I suspect that its share price could come under pressure and wouldn’t be surprised to see it slide as low as the offer price if some institutional and professional investors look to make a quick profit.

At that point it could be worth considering a small investment, though I intend to wait for its performance to improve before doing so.

 

[bigdog]

SP down to Neilson sale price of $5.00


The release explains that the sale will be made via an off-market bookbuild at a sale price of $5.00 per share, compared to the last close price of $5.50.

 

[finicky]

Worth a note?
PTM is the only one of my list of 40 LICs, ETFs and managed funds that is up today apart from bear ETFs: BBOZ and BEAR.
Could it be recognition of the short p/fs that they run to balance risk in their long p/fs? They say they are, "short overpriced, safety, and growth stocks"
Or the cash portion they hold?
Or the 'theses' they run their investments on that growth and 'safety' stocks are in a bubble and the stocks they focus on - industrials and cyclicals - are very cheap?
Or how about the plump dividend?

Holding small position
Sentiment: was considering buying a few today but the price went up!

 

[finicky]

PTM (Platinum Asset Management) @ $3.56

Intriguing going back over this PTM sub-forum over the years - for me anyway. Goes right back to the ASX pre-listing and the IPO. Then the drama of reaching $9 upon listing on the boards for what was a $5 IPO. This was back in the heady days of 2007 pre GFC. Then the GFC when it looked like it bottoned earlier than many @ about 2.60 in about June/July of 2008. Posters back then must be missed a little by some now - some astute commentary imo and one poster showing prescience and strong fundamental conviction (Rainmaker)

Now I'm looking at it and am convinced of its value and safety as a dividend stock with a good chance of modest capital appreciation in future when we get out of this morass, but am staying my hand so far for a change of sentiment chart signal. Not that I'll go in for big bickies - maybe just another 1,000 or 2,000 shares.
Just a primitive thought today - if I go back over the past 10 years of franked dividends and throw out the outlier of 47c paid in fy15 and then average the next three best dividend paying years of 34, 32, 30 cents = 32c average. The yield for that @ today's share price of 3.56 would be 9% fully franked. Assumes we get back to those days a year or three down the track, plus it follows would get a share price rise too.

Worth noting though that the IPO for this was at $5 in, I think it was April of 2007, (cunning timing?) and 'loyal' holders from that time are holding a share worth only $3.56 today

Held

PTM All Data Monthly

 

[Dona Ferentes]

from that graph, can you guess when Kerr Neilson's divorce settlement came through?

I've always taken the view for these headstock companies* in the funds management game, skilled as they are in corporate manoeuverings, that they don't necessarily have the interests of external investors at heart. The set-up can be to deliver 'golden handcuffs' by way of long-dated options to key personnel, as a means of retaining staff and not letting them head off to work for opposition or set up their own shop. (and when they vest, can then sell to finance new house, new mistress, new identity down the track)

Additionally, the nature of Funds Under Management (FUM) especially for unlisted funds is that success, outperformance, shows both a FUM lift from revaluations PLUS investor inflows (everyone likes a winner). This of course works the other way in a down market or when managers get it wrong. So the apparent alpha is essentially amplified (and why managers become closet index-huggers because the punishment for underperformance outweighs the upside from being a hero)

*PTM, also MFG, PNI, PCG, IFL and beaucoup others

 

[finicky]

Had my nibble for the day, PTM down close to the GFC low (not that that's any proof). Picked up another 1,000 shares @ $3.70, didn't snag tbe intra-day low.
The following graph is of interest to me and suggests tgat PTM funds have at least some cushion to the dakage from long positions. The funds are short 'safety' and bubble growth assets, or something like that, while being long undevalued cyclicals and industrials or again, something like that (you look it up, its in the February H1 analysts briefing). Anyway, the graph shows how strikingly better the funds would have performed against the benchmark over different periods if not for cautious short positioning, at least I think's that how we're meant to interpret it.
The other thing I'm tempted today to add in this sector is Fiducian (FID) - directors still stoically buying, but the chart suggests to me lower is possible, who knows?

 

[finicky]

Funds are still outflowing, although the FUM are a little better as usual because of the appreciation in value of the purchased assets. PTM will be well worth a look in a crash because of the solid stuff they buy imo. Meanwhile the chart is in an orderly channel of decline after a strong rally and not a concern for holders, save exogenous events.

Daily

 

[finicky]

Really nice moves from PTM this week. Missed opportunity with that dividend imminent.

Daily

 

[Garpal Gumnut]

Really nice moves from PTM this week. Missed opportunity with that dividend imminent.

Daily
View attachment 120603

Also me.

gg

 

[dyna]

Platinum increased its 2021 profit by all of .....5% ! The index is up by...what? 30% ? These ace stock-pickers, even saw fit to pay themselves a $4 million performance fee. ( Down from $ 9 Mill. last year )
$ 20 Billion under management and they can only earn a miserable $ 163.25 Million net profit .
Here's why you may as well give up on "active" management, people .....Just go for E.T.F's .

 

[Dona Ferentes]

Platinum increased its 2021 profit by all of .....5% ! The index is up by...what? 30% ? These ace stock-pickers, even saw fit to pay themselves a $4 million performance fee. ( Down from $ 9 Mill. last year )
$ 20 Billion under management and they can only earn a miserable $ 163.25 Million net profit .
Here's why you may as well give up on "active" management, people .....Just go for E.T.F's .

Pretty confusing , isn't it. For you, perhaps

PTM is the corporate structure. It is a non-operating holding company of Platinum Investment Management Limited (PIML).

If you want to look a the market, where active management happens, try PMC Platinum Capital or PAI Platinum Asia, the listed versions of the managed funds together with Platinum Europe and a bunch of sector specific funds:


Investment Performance
1 year .... 5 yrs (% pa) ...... 10 yrs (% pa) ....... Since inception (% p.a.)
PMC's performance
.. 23.9% ...... 10.6% ........... 10.8% .......... 11.8%
MSCI AC World Net Index in A$i
.... 27.7% ....... 14.4% .......... 13.9% ......... 7.8%

 

[finicky]

PTM down at $3, the price J.Neilson recently offloaded the bulk of her shares.
Following her sale, October is the first month I can remember where net outflow of funds is matched by a drop of FUM - and big drop in FUM too, negative ~$1.3B
Will the chart drop to the all time lows near 2.50?
It wouldn't be the first time that the Neilsons have sold masses of shares that benefited them at the cost of those who bought their shares.

Held

All Data Mthly

 

[Dona Ferentes]

PTM down at $3, the price J.Neilson recently offloaded the bulk of her shares.
Following her sale, October is the first month I can remember where net outflow of funds is matched by a drop of FUM - and big drop in FUM too, negative ~$1.3B
Will the chart drop to the all time lows near 2.50?
It wouldn't be the first time that the Neilsons have sold masses of shares that benefited them at the cost of those who bought their shares.

Judith N is divorced from Kerr. She had 50% as part of the settlement but only just got control over them.
From 15 Oct:
"The trade comes less than two weeks after Neilson took full control of the shares.

"The stock’s voting, disposal and other rights were formerly held by her ex-husband, and Platinum Asset Management founder, Kerr Neilson, as part of a “Stability Deed” signed in March 2016.

 

[Dona Ferentes]

Platinum Asset Management’s chair has sympathised with shareholders hit hard by the company’s tumbling share price, which is down a third this year.

“With our share price trading at current levels, I can understand that shareholders are likely to be disappointed with the share price performance,“ said Guy Strapp, chair of Platinum, in comments for the annual general meeting.

He said the decline in the share price was “predominantly a factor of the fund’s relative underperformance vis a vis the broader market which in turn impacts net fund flows and investment management fees.”

He also pointed to the sale of a block of stock by Judith Neilsen as another factor depressing the shares but said the company was not undervalued relative to competitors.

“Given our recent investment performance and client redemptions we do not appear to be undervalued right now,” he said.