Caledonia Investments

[Dod1010]

This IT announced its half year results yesterday. all is well, with the dividend up 6.7% for the half year. The discount is still high at around 20% though. I know not why because this seems to be to be just the sort of IT that we need for all seasons. It has to me a good mix between quoted and unquoted investments with a leavening of Private Equity. Just the sort of stuff I would not be able to invest in myself, and even with the quoted investments I am unlikely to take the trouble to invest in them.

It is another of those Its, like London & St Lawrence that just keeps plugging away with a large and influential shareholder in the form of the Cayzer Trust behind it.

[Lootman]

The discount is still high at around 20% though. I know not why because this seems to be to be just the sort of IT that we need for all seasons. It has to me a good mix between quoted and unquoted investments with a leavening of Private Equity.

The discount is closer to 25% according to their latest factsheet. But you do know why the discount is high - you just don't know that you know. It will be those unquoted and private issues, about 40% of the total. Most of the private equity ITs are on large discounts reflecting the lack of liquidity in the underlying assets.

But you're getting something completely different and I hold it for exactly that reason:

file:///C:/Users/Martin/Downloads/FactSheet+20161031.pdf

[Dod1010]

Thanks Lootman
You are right. I am no follower of private equity. I like Caledonia of course otherwise I would not invest in it. It is one of those not just LTBH investments but 'forever' investments for me. I am surprised that it is not featured more on this Board (or the equivalent TMF Board for the pedantics amongst us)

Dod

[richfool]

Citywire shows yield of about 2.1% and discount 18.0%. It's in the global growth sector, though has about 51% in the UK.

http://citywire.co.uk/money/investment- ... undID=2815

It has some unusual holdings, including holiday parks, bingo and entertainment venues.

[peka]

Another reason why Caledonia's discount is high is because it does not buy back its own shares in order to reduce the discount. This is due to the large holding by the Cayzer family and an undertaking given to the UK’s Takeover Panel not to execute any share buybacks that would take the holding by the Cayzer 'concert party’ above 49.5%, according to this web page:

http://monevator.com/caledonia-investments/