IRR: +15.7%

Holding Period: 1.0 Years


Elevation Capital Value Fund acquired a substantial (NZX Notified) position in Salvus Strategic ("Salvus") after an announcement from the Salvus Board that they were investigating the possibility of returning capital to shareholders. Our investment in Salvus was premised on a return of capital over a number of months that would provide an attractive annualised return. As with many of these liquidation type scenarios it is never as straight forward as one expects and several months after acquiring our interest we were faced with a competing proposal from Milford Asset Management to takeover the management of Salvus and for the Company to remain listed. This was a proposition we were not prepared to support as evidenced by our comments in a number of press articles where we clearly stated we wished to either liquidate or be given the opportunity to exit for our investors at Net Asset Value (less costs) as we believed this would provide both a higher/safer return on/of capital. On 19 October 2011, at a Special Meeting of Shareholders - Milford Asset Management withdrew its proposal and shareholders voted to liquidate the Company.