Author Topic: TFG / TGONF - Tetragon Financial  (Read 22885 times)

thepupil

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Re: TFG / TGONF - Tetragon Financial
« Reply #50 on: July 16, 2020, 06:04:02 AM »
In May, Tetragon raised ~$66mm in cash mostly via sales of their event driven strategy, bringing net cash to ~$150mm (17% of market cap, ~7% of NAV). They seem to have timed the addition to this strategy well and quickly harvested gains.

Today, Tetragon announced a new $250 million 10 year credit facility, this gives Tetragon ~$400mm of dry powder (less some committments). The market cap is $866mm and management owns a fair amount of the stock (30%) so the float is materially lower. The credit facility was upsized from $150mm.

Thus far, CLO equity as an asset class (not at TFG specifically) is only down about 25% across the board. I expect more losses, but there's a potential it's not all worthless.

I think the recent cash raise as well as the new credit facility are de-risking events and that Tetragon is incrementally more compelling at 40% of NAV / 4.4% yield, with continued material share repurchases. If you write-off Ripple Labs (7% of NAV) and CLO equity its at 50% of NAV. 

https://www.tetragoninv.com/~/media/Files/T/Tetragon-V2/financial-report/2020/monthly-factsheet-may-2020.pdf
https://www.tetragoninv.com/news/press-releases/year-2020/16-07-2020
« Last Edit: July 16, 2020, 06:31:38 AM by thepupil »


thepupil

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Re: TFG / TGONF - Tetragon Financial
« Reply #51 on: November 20, 2020, 11:14:25 AM »
Tetragon is currently tendering for $25mm of shares (that's about 2.7% of shares). because the stock trades for 40% of NAV, this small repurchase is actually quite accretive (+1.7% to NAVPS all else equal).

this thread was started at about $9.90 / share in April 2015. Since then $4.00 of dividends have been paid, and NAV has grown from $17 and change to $24.50 pro-forma for the tender.

i think the vaccine and recovery in credit has removed some of the worst case NAV writedown scenarios while a lot of other stuff has rallied.

5 years and counting, still like TFG.

i never thought myself a crypto guy, but having 6.5% of NAV in Ripple Labs when this trades at 40% of NAV (but 16% of the market cap) also adds a little bit of potential rocket fuel to the equation, but I have not idea how to think about the probability of that. as previously stated one can just write it off.
« Last Edit: November 20, 2020, 11:18:49 AM by thepupil »