Elevation Capital Value Fund: AbbVie announced it was acquiring Allergan, at a +45% premium to the closing price on 24 June 2019. This announcement adds to a history of takeovers in the Fund since its inception. Allergan was one of the largest positions in the Fund which seeks to acquire companies trading below their intrinsic value and that are out of favour or focus with many investors. Read more about the most recent takeover Elevation Capital has benefited from in our monthly mailer (released 7 July 2019) here.
Elevation Capital Value Fund: Aston Martin Lagonda Global Holdings PLC is a British independent manufacturer of luxury sports cars and grand tourers. Famous for its association with James Bond, the company’s vehicles are sold in over 50 countries on six continents. Investors in the Fund own a share of this historic vehicle manufacturer since May 2019. Read about Aston Martin Lagonda and why we established a position in the company in our monthly mailer (released 15 June 2019) here.
Elevation Capital Value Fund: Investors in the Fund own a share of 15-acres in one of the most valuable locations in the world. Brexit fears and current negative sentiments towards investment in the UK have provided us with an opportunity to re-purchase a stake in Shaftesbury PLC; a holder of valuable real-estate concentrated in London's West End. Read our Investment Summary here.
Elevation Capital Value Fund: Avengers Endgame has broken the world record for the highest opening weekend gross at over USD $1.233 billion. Investors in the Fund own a share of The Walt Disney Company, the blockbuster powerhouse responsible for this production. Read more about the Fund’s position in Disney in our monthly mailer (released 13 May 2019) here.
Elevation Capital Value Fund: Investors in the Fund own a share of Richemont SA, a Switzerland-based luxury goods holding company with a wide range of strong brands. Through its various luxury brands Richemont produces and sells jewelry, watches, leather goods, pens, firearms, clothing, and accessories. Richemont has created a short cinematic epic focusing on its history, its values and inspirations, its artistic and universal scope. View this and read more about the Fund’s position in Richemont in our Monthly Mailer (released 11 April 2019) here.
Elevation Capital Value Fund: Last month we highlighted our position in the American retailer L Brands. This month Barington Capital Group LP, a shareholder of L Brands, is recommending a break-up of the company to crystallise value for shareholders. Read Barington Capital’s letter in our monthly mailer (released 14 March 2019) here.
Elevation Capital Value Fund: Investors in the Fund own a share of L Brands, an American fashion retailer whose flagship brands include Victoria’s Secret and Bath & Body Works. L Brands posted USD $13.237 billion in revenue in 2018, and was listed as #231 in the 2018 Fortune 500 list of the largest US companies by revenue. Read more about L Brands in our monthly mailer (released 15 February 2019) here.
Elevation Capital Value Fund: Spotify is the world’s largest music streaming service, with over 87 million subscribers in 78 markets, with Apple and Amazon in distant second and third. The Fund has held a position in Spoify since November 2018 after the company announced a USD $1 billion share buy-back while having no debt. Read more about the Fund’s position in Spotify in our Monthly Mailer (released 12 January 2019) here.
Elevation Capital Value Fund: Viacom Inc is an American media conglomerate which owns Paramount Studios. While all the focus has been on the rise of Netflix, much less attention has been given to who produces the most popular content which drives traffic to the streaming platform. Paramount Studios produced 13 Reasons Why, the most popular show on Netflix in 2018. Read more about Viacom in our monthly mailer (released 11 December 2018) here.
Mitch Harris catches up with Christopher Swasbrook to talk about the latest business news.
Mediaworks NZ have announced a merger with Australian-based outdoor advertising company QMS. Why is the billboard medium currently so popular?
How is the radio business currently performing in New Zealand?
Stockmarkets worldwide are very volatile at the moment, mainly due to US President Donald Trump's trade talks.
Is Sydney heading towards a major housing crisis? How is Australia's economy looking at the moment?
Why do some countries rely so much on China to get their economy going?
A text question from Cliff to Chris Swasbrook - what do you think of Synlait milk?
Simon calls in to ask Chris a question regarding currencies, and why they increase and decrease so rapidly.
The debt-laden Kapiti Coast District Council has announced an interesting way at looking to reduce their $149million debt - by borrowing and investing money to try and turn their fortunes around. A brave move, but will it work?
Elevation Capital Value Fund: During New York Fashion Week Professor Scott Galloway sat down with fashion influencer Mr Bags, a luxury bag blogger who has amassed over four million followers on social media. Mr Bags recently collaborated with Tod’s, currently the 15th largest position in the Fund, selling USD ~$430k worth of bags in seven minutes. Watch the interview in our monthly mailer (released 9 November 2018) here.
Elevation Capital Value Fund: After receiving a takeover offer in July 2018 for our investment in APN Outdoor from JC Decaux (also a Fund holding) we re-invested the proceeds back into the out-of-home advertising (OOH) market by acquiring stakes in two new undervalued companies for the Fund: Outfront Media in the USA and QMS Media in Australia and New Zealand. Read more about this development and view videos from the companies in our monthly mailer (released 10 October 2018) here.
Elevation Capital calls for NZX Limited (“NZX”) to implement a revised strategic plan, with clear financial metrics, a spin-off of the Fund Services business, strategic joint ventures, further reductions in headcount, and an elimination of wasteful spending.
Elevation Capital’s Managing Director & Portfolio Manager - Christopher Swasbrook states:
“NZX’s current strategic plan presented in November 2017 is not strategic, nor a plan. If I handed the current document to someone to go and execute, they would know neither (i) what to do, nor (ii) what results it was meant to achieve. In essence it is a political document, written so the Board and Management can maintain good graces with the stakeholders that they are looking to cultivate. In this, the NZX of today, has become the NZ Post of old. Looking for political solutions to business problems, instead of looking for real business change.”
“NZX is a company still run for the agents (Management) versus the actual owners (Shareholders) with excessive headcount, costs and wasteful spending. Symbolic of this culture of wasteful spending is the recent trip to New York by over 10 members of the NZX Board and Management team.”
Swasbrook adds … “If ever there was a time for Shareholders to assert their rights to hold Board/s and Management/s accountable given the recent headlines and poor financial performances with seemingly no impact on remuneration levels amongst corporate New Zealand, it is now. The least I can do is stand-up publicly and highlight the need for increased accountability.”
Our full Press Release is available here.
Elevation Capital Value Fund: Investors in the Fund once again own a share in Daimler, the manufacturer of Mercedes Benz. The Fund re-acquired an investment in Daimler as the threat of tariffs on the automaker’s shares resulted in a sell-off despite the company releasing its first electric vehicle. Read more about the company and how they view the future of mobility in our monthly mailer (released 14 September 2018) here.
Elevation Capital Value Fund: Nestle SA is currently the second largest position in the Fund. The company is under pressure from hedge-fund manager David Loeb. On 29 June he sent a letter and 34 page presentation to Nestle’s board urging them to divest further businesses that no longer fit the portfolio, resulting in a favorable +4.9% gain in Nestle’s share price in July. We expect Nestle to undertake further value enhancing initiatives in the short-term. Read more about Nestle and see David Loeb’s letter to the Board in our monthly mailer (released 7 August 2018) here.
Elevation Capital Value Fund: This month we have received a takeover offer for APN Outdoors from Paris-based JC Decaux. As is often the case with companies trading at, what we consider to be, a discount to their intrinsic value others believe they are cheap too and try to acquire them or take them over. Investors in the Fund will benefit from the healthy premium to our cost basis for establishing a position in APN Outdoors. Read more about how the Fund benefited from this situation and our historical takeover timeline in our monthly mailer (released 9 July 2018) here.
Elevation Capital Value Fund: Investors in the Fund own a share of Tiffany & Co, renowned for its luxury goods and particularly for its diamond and sterling silver jewelry. Tiffany & Co’s shares hit an all-time high of USD $130.78 on 31 May 2018, giving the fund an annualised return in Tiffany & Co of +21.08% to date (15 June 2019). We have anticipated Tiffany will perform well as it recovers its lustre through leveraging its strong brand equity and appealing to younger generations to drive sales. Read more about Tiffany & Co and find our reports on the company in our monthly mailer (released today, 15 June 2018) here.
Elevation Capital Value Fund: Investors in the Fund own a share of Coty Inc, a significant player in global beauty. Coty manufactures, markets, and sells branded beauty products in the fragrance, colour cosmetics (including nail care), and skin & body care categories. The company, owner of beauty brands CoverGirl, OPI, and Rimmel, is giving Clairol’s Nice n’ Easy a new look. See Coty’s new campaign and read our investment presentation on the company in our monthly mailer (released 12 May 2018) here.