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Multi-Asset Blog - New investment - British Empire

Wednesday, February 15, 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset.
British Empire: an undervalued asset

Sometimes investing is simple. Everyone understands that if you can buy something for less than it’s worth you should do well. British Empire adopt this approach in less well researched parts of the market, looking for both undervalued assets, and importantly, underlying assets that will appreciate over time. Their hunting ground is in investment trusts, family controlled holding companies and property companies listed around the world. These give them exposure to a hugely diverse range of investments, including ecommerce businesses, New York real estate, Swedish industrials and German residential property.

British Empire then look for catalysts for the share price of their investments to catch up with the value of the underlying assets, either through share buybacks or special dividends. If this is not forthcoming they adopt a constructive activist approach. This simple style of investing has seen them compound returns at over 12% a year since 1985.

As British Empire is itself an investment trust trading at a discount to the value of its underlying invests, we estimate that we can buy £1 of assets for 65 pence; that kind of value doesn’t come around very often.

IMPORTANT INFORMATION | Issued and approved by Pacific Capital Partners Limited, a limited company registered in England and Wales, authorised and regulated by the Financial Conduct Authority . The information contained herein is not approved for use by the public and is only intended for recipients who would be generally classified as investment professionals. Information or opinions contained in this article do not constitute an offer to sell or a solicitation, or offer to buy, any securities or financial instruments or investment advice or any advice or recommendation in respect of such securities or other financial instruments. Where past performance is shown it refers to the past and should not be seen as an indication of future performance.

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