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Ares Management Corporation Class A (ARES)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: 3i Group PLC: ticker TGOPY ADR, pink sheets.
Not sure if you wish to provide any high level comments on this foreign company.
Long term price performance looks very good and it seem like a good valuation to me. Do you seen any red flags? Any comments would be appreciated because it seems like a good 2% position to have in a TFSA. Thanks
Not sure if you wish to provide any high level comments on this foreign company.
Long term price performance looks very good and it seem like a good valuation to me. Do you seen any red flags? Any comments would be appreciated because it seems like a good 2% position to have in a TFSA. Thanks
5i Research Answer:
As we don't cover international equities, we can just briefly comment on it. TGOPY operates as a private equity firm that specializes in mature companies, infrastructure, leveraged buyouts, etc. Over the years TGOPY has consistently grown its book value per share and dividend payments. TGOPY is trading at 6.1x Forward P/E, which is quite cheap for an asset manager, but most of TGOPY’s AUM is in private equity strategy (AUM growth could be more cyclical than other strategies such as real estate or private debt). Investors in TGOPY need to be mindful of tax consequences regarding withholding taxes too. Largely on familiarity, we prefer other asset managers in the US or Canada such as BN, and ARES.