Majedie Investments PLC · LSE:MAJE
Majedie Investments — Shareholder Meeting (February 2025)
25 slides from Majedie Investments's shareholder meeting presentation, Feb 19, 2025
Slide 1: Majedie Investments PLC Annual General Meeting
Majedie Investments PLC Annual General Meeting 19th February 2025
Slide 2: Important regulatory information
Important regulatory information This document has been approved and issued by Marylebone Capital at risk. The value of shares in the Company (and any Marylebone has taken all reasonable care to ensure that the Partners LLP ("Marylebone") as a financial promotion for income derived from them) can go
Slide 3: FY 2024
FY 2024 teeters
Slide 4: Results Highlights to September 2024
Results Highlights to September 2024 NAV Share Price total return total return +21.5% +24.1% Total dividends Target dividend per share (% of NAV) 8.0p 3% Source: Majedie Investments PLC, 2024 Annual Report covering the period of 12 months ended 30 September 2024. Unless stated otherwise, figures sho
Slide 5: Contribution by strategy in FY2024
Contribution by strategy in FY2024 Compelling returns across the portfolio Contribution by strategy financial year-to-date 1 October 2023 – 30 September 2024 Equity-centric +1077 bps Absolute Return +457 bps +372 bps +314 bps Other -1 bps External Managers Direct Investments Special Investments Sour
Slide 6: Contribution by strategy FY Q125
Contribution by strategy FY Q125 External Managers deliver in an otherwise underwhelming quarter Contribution by strategy financial year-to-date 1 October 2024 – 31 December 2024 Equity-centric +100 bps Absolute Return +110 bps -44 bps -60 bps -253 bps External Managers Direct Investments Special In
Slide 7: Since our appointment
Since our appointment Discount narrows as the share price recovers Share Price & Net Asset Value (total return) - since change of manager to Marylebone Partners Share Price NAV (Debt at FV) +20.0% 275 +40.2% pence per share 225 175 Jan 23 Jul 23 Jan 24 Jul 24 0% -10% -20% -30% Premium / Discount to
Slide 8: Marylebone Partners' liquid-endowment model
Marylebone Partners’ liquid-endowment model Capitalising on the investment trust format Criteria for a successful modern-day investment trust Investment Imperative Commercial Imperative Differentiation Scarcity Access Complementarity Focus Value-added Regime & Style Agnostic No complexity Patience T
Slide 9: Investment outlook
Investment outlook teeters
Slide 10: The investment landscape has changed
The investment landscape has changed It’s abnormal, no longer… Old Regime New Regime % • Falling interest rates • Higher interest rates 18 • Rising markets • Fewer market tailwinds 16 • Cheap leverage • Less leverage • Abundant liquidity • Variable liquidity 14 • Low dispersion • More dispersion 12
Slide 11: 'Old regime' thinking creates opportunities
‘Old regime’ thinking creates opportunities A different playbook is required US dominates in global equities A passive approach carries heightened risks 30 36% S&P500 Concentration in % of total market cap 25 Top 10 Stocks 20 15 10 5 1950 1960 1970 1980 1990 2000 2010 2020 1950 1953 1956 1960 1963 1
Slide 12: Market outlook
Market outlook With fewer tailwinds, idiosyncratic alpha becomes more important S&P 500 forward P/E ratios and subsequent 10-year returns Spreads ended 2024 at tight levels 30 bps bps 10-year annualised returns 2000 700 20 600 10 1600 High Yield (LHS) 500 0 1200 400 -10 800 300 -20 200 Current level
Slide 13: Current positioning
Current positioning A collection of high-conviction, non-consensual bottom-up ideas Many of the best risk-adjusted opportunities lie outside the U.S. A positive inflection point for mid-small caps 110 60% 10% Net Business Outlook for next 6-months (RHS) 40% 12 -month relative performance U.S. outper
Slide 14: Portfolio
Portfolio 14
Slide 15: Three complementary fundamental strategies
Three complementary fundamental strategies External Direct Special Managers Investments Investments Regional Specialists Quality Compounders Co-investments Sector Specialists Unappreciated Change Special Purpose Vehicles Style Specialists Thematic opportunities Specialist Credit 15
Slide 16: External Managers
External Managers How we add value Finding the world’s best External Managers Marylebone Partners identifies and evaluates best-in-class specialist managers. • Sourced through a global ideas network. WE LIKE W E AVO I D • Rigorous proprietary research, structured around evaluating a manager’s People
Slide 17: Millstreet Credit Fund
Millstreet Credit Fund External Absolute Specialist Manager Return Credit Manager Profile Boutique firm, specialising in U.S. mid-market high-yield credit. Based in Boston, MA, founded in 2010 by experienced team ex Regiment Advisors (Harvard Management Company spinout). US$ 1.6 billion. Soft
Slide 18: Direct Investments
Direct Investments A “Four Building Blocks” framework How we add value Marylebone’s direct investments capability Economic Revenue Profitability Growth • Our in-house team invests directly in public equities. Cash Conversion Secular Trends • Only invest in sectors and geographies within our team’s B
Slide 19: Where do we see opportunity?
Where do we see opportunity? Idiosyncratic bottom-up situations in non-consensual areas Real US midcaps Special Investments Assets International stocks Specialist Credit 19
Slide 20: KBR Inc
KBR Inc Direct Investment Equity- centric Industrials The company Founded in 1998, KBR is a U.S. engineering and services company for government and commercial sectors. Expanded capabilities through acquisitions in Government Services, Space, Defence, and Sustainable Technologies. Renamed Gove
Slide 21: Special Investments
Special Investments Marylebone Partners’ criteria for a Special Investment How we add value Co-investments and thematic opportunities Marylebone Partners sources distinctive and high return potential ‘Special Investments’. An opportunity to participate alongside some of the world’s best investors in
Slide 22: Project Wrigley (Portillo's Inc)
Project Wrigley (Portillo’s Inc) Special Investment Equity- centric Co-invest Idea sponsor Engaged Capital is a Newport Beach-based activist investment firm focusing on small to mid-cap companies. All investments must conform to criteria in three areas: Valuation, Agenda and Engagement. Maryle
Slide 23: Current positioning
Current positioning Strategy allocation Beta-adjusted net exposure - since inception Geographic profile 100% 80% 60% 70.4% 40% 20% External Managers 62% Direct Investments 18% 0% N. America 33% Global 26% Special Investments 11% Cash & Equivalents 5% Feb-23 Jan-24 Dec-24 Europe 13% Emerging Markets
Slide 24: Current positioning - largest holdings
Current positioning - largest holdings External Managers 62% Direct Investments 18% Special Investments 11% Equity-centric Absolute Return KBR Inc Global X Uranium ETF & Helikon Long Short Equity Fund Contrarian Emerging Markets Fund Sachem Cove Special Opportunities (Project Uranium) SS&C Technolog
Slide 25: Concluding thoughts
Concluding thoughts A well constructed portfolio of idiosyncratic investments for a more complex and volatile backdrop • Differentiated returns through three distinctive strategies. • Equities remain at the heart of the approach. • Access to opportunities not otherwise available in the investment-tr
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