One of the standout trades in the portfolio last year was in the investment manager distribution & support business Pinnacle. Since November last year, shares have nearly halved from all-time highs with a re(de)-rate across all listed managers. Pinnacle is somewhat different to the rest though, taking stakes in a diversified range of money managers across debt, equity, international and everything in between and providing them with the backend services with a focus on marketing and distribution. They have further capacity to scale up and with exposure across a variety of asset classes with a cross section of boutique managers, it’s likely to receive both a steady stream of performance fee and inflows in all market environments i.e. they are not just reliant of one star manager investing in one asset class. Performance fees in particular provide a free kick for growth if/when they come and with the core business already growing 10+% per annum it’s hard not to like PNI after this recent pullback.
MM is bullish PNI looking to add it to the Emerging Companies Portfolio
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