SOL is up +25% year-to-date, but last month saw the stock spike lower after the conglomerate reported a 9% drop in “regular profit”. At the same time, they interestingly announced the reallocation of almost $1bn away equities over the past year - the investment business now has over $900mn in cash, up more than 87% from the previous year. As we touched on earlier they are earning ~5% pa on this cash while they search for better opportunities, this return aids patience.
In a similar fashion to BKW, we saw SOL fall -6% on Thursday after the conglomerate reported a 9% drop in “regular profit” while they announced the reallocation of almost $1bn away equities over the past year.
SOL +27.10%: the investment company rallied to a 5-month high today on the back of strong performance in underlying investments. The company now runs nearly $10b across equities, property and private equity with a strong NAV per share increase of 13.8% in a market that fell. The total value of the portfolio increased by 72% largely on the back of their merger with Milton. They finished the year in a net cash...
SOL +5.95%: a bumper FY21 result for the investment company with regular NPAT up 93%. Contributions from investments in Brickworks (BKW) and New Hope Coal (NHC) were up 95% and 43% respectively while the main drag on the result came from TPG, though mostly as a result in a change in accounting methods relating tot eh investment.
Washington H. Soul Pattinson and Company Ltd (WHSP) is an Australia-based investment company. WHSP’s segments include Strategic portfolio, Large caps portfolio, Emerging companies portfolio, Private equity portfolio, Structured yield portfolio and Property portfolio. Strategic portfolio comprises investments in uncorrelated listed companies where WHSP has board representation. Large caps portfolio managed, Australian listed equities portfolio. The portfolio seeks to generate consistent income and capital growth over the long term. Emerging companies portfolio invests in attractive, early-stage and high growth companies that are listed, about to undertake an Initial Public Offering (IPO) or at a pre-IPO stage. Private equity portfolio Includes long term investments in unlisted companies to support their future growth. Structured yield portfolio contains investments in corporate loans and hybrid instruments. Property portfolio includes investments in property development joint ventures.
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