I said in last week’s post you could expect some volatility in EGP’s share price as our 2nd largest holding, Dicker Data tries to find its correct price in the eyes of Mr. Market.
Well a roughly 13% drop in the Dicker share price this week is responsible for the majority of the 1.7% drop we experienced this week. I reinforce, we are committed to seeing how they go integrating the new business because if they get it right, there is a very large upside. Given the directors own around 95% of the firm, their incentive to get it right is strong.
It is a big part of the reason the majority of our larger holdings have very substantial insider ownership, the alignment of incentives is important to us, as you can see by the way we’ve structured EGP.
We are 11% of the way into the buying program I mentioned in the 3rd quarter investment letter, it has taken us about 6 weeks to get there, which would mean we might expect to be finished by around this time next year. We are investigating ways to accelerate the acquisition process, primarily by direct contact with existing holders to try to find sellers, but a little legwork and a little patience will pay off in the long term – Tony Hansen 12/04/2014
|
|
Apr 1st 2011 |
Jan 1st 2014 |
Current Price |
Current Period |
Since Inception |
|
EGP Fund No. 1 |
1.00000 |
$1.60232 |
1.62181*1 |
1.22% |
66.28%*2 |
|
35632.05 |
44635.11 |
45861.00 |
2.75% |
28.71% |
EGP Fund No. 1 Pty Ltd. Up by 1.22%, trailing the benchmark by 1.53% since January 1st. Since inception, EGP Fund No. 1 Pty Ltd is Up by 66.28%, leading the benchmark by 37.57% all-time (April 1st 2011).
*1 after 31May 2013 dividend of 2.333 cents per share plus 1 cent per share Franking Credit
*2 calculated based on dividends reinvested
