Majedie Investments PLC · LSE:MAJE
Majedie Investments — Investor Presentation (December 2023)
24 slides from Majedie Investments's investor presentation, December 2023
Slide 1: Majedie Investments PLC
Majedie Investments PLC December 2023
Slide 2: Important regulatory information
Important regulatory information This document has been approved and issued by Capital at risk. The value of shares in the Company (and Marylebone has taken all reasonable care to ensure that Marylebone Partners LLP ("Marylebone") as a financial any income derived from them) can go down as well as u
Slide 3: Background
Majedie Background EOI ON. G8 00.08 Od 00!
Slide 4: Introduction
Introduction Majedie Investments PLC appointed Marylebone Partners LLP as new investment manager with effect from 25 January 2023 Following the sale of Majedie Asset Management to Liontrust plc., the Board of Majedie Investments PLC conducted a comprehensive review of the Company’s investment manage
Slide 5: The decision to appoint Marylebone Partners LLP
The decision to appoint Marylebone Partners LLP A unanimous choice to lead Majedie Investments PLC into an exciting new era Investment performance Experience Marylebone Partners has managed capital successfully to a Marylebone’s principals have previously managed capital total-return mandate, bo
Slide 6: Introducing Marylebone Partners
Introducing Marylebone Partners An independent specialist in managing capital for long-term total returns Executive Leadership Experience Led by Dan Higgins, a 12-person team brings varied backgrounds, perspectives and skills. Prior experience at industry-leading firms including Fauchier Partners, W
Slide 7: Marylebone Partners' liquid-endowment model
Marylebone Partners’ liquid-endowment model Capitalising on the investment trust format Criteria for a successful modern-day investment trust Marylebone Partners’ liquid-endowment model emulates the long- term, fundamental mindset that has driven the success of elite university endowment programmes
Slide 8: Macro and markets backdrop
Macro and markets backdrop Page – 8
Slide 9: The investment landscape has changed
The investment landscape has changed Our working assumptions… > Structurally higher interest rates > Ongoing macro and geopolitical volatility A NEW PLAYBOOK IS REQUIRED > Variable liquidity conditions > A higher cost of capital for enterprises > More (fundamentally driven) dispersion Page – 9
Slide 10: How to prosper
How to prosper A framework for success over the next 5-10 years Stop “old regime” thinking Embrace “new regime” thinking Don’t presume there will be beta tailwinds (passive Weighing Machine (not Voting Machine). exposure could be risky). There IS an alternative to equities (e.g., stressed cred
Slide 11: Market Outlook
Market Outlook Selectivity, patience, and an ability to identify bottom-up opportunities Credit: the opportunity outside of equities Short-term price action continues to be driven by evolving 'narratives'. Last quarter’s dominant theme was that interest rates would need to remain 'higher for longer'
Slide 12: Market Outlook
Market Outlook Selectivity, patience, and an ability to identify bottom-up opportunities Dispersion: the opportunity within equities The environment argues for discipline and selectivity within equities. From this starting point, we are sceptical that passive strategies will deliver strong outcomes
Slide 13: Portfolio update
Majedie Portfolio update EOI ON. G8 00.08 Od 00!
Slide 14: Marylebone's differentiated investment model
Marylebone’s differentiated investment model Combining three distinctive fundamental strategies Special Investments External Managers Direct Investments Eclectic, high-return-potential opportunities Global network of leading specialist funds Long-term investors in great companies ‘One Degree of Sepa
Slide 15: The new Majedie portfolio: Special Investments
The new Majedie portfolio 1. Special Investments Through an ideas network built over two decades, Marylebone Partners accesses distinctive investment opportunities, each capable of generating annualised returns of 20% or more. Eclectic, high-return-potential opportunities ‘One Degree of Separation
Slide 16: Special Investment Examples
Special Investment Examples Project Cauldron Project Sherpa Project Diameter Co-invest Co-invest Co-invest Trusted source Trusted source Trusted source Boutique long-short manager based in Dallas, TX. Known West Coast activist with whom we have made three prior Boutique long-only manager with whom w
Slide 17: The new Majedie portfolio: External Managers
The new Majedie portfolio 2. External Managers RiP breakdown of External Managers Equity-centric Eight funds, each managed by specialists in structurally inefficient sectors, regions, or style categories. We see potential for multi-year alpha-driven returns in low teens from this group. Sector
Slide 18: External Manager Examples
External Manager Examples Millstreet Credit Fund Specialist Paradigm BioCapital Partners Sector Helikon Investments Regional Credit Specialist Specialist Millstreet is a Boston-based credit specialist, whose Paradigm BioCapital is a SMID cap biotech specialist, A European ‘special situations’ fund,
Slide 19: The new Majedie portfolio: Direct Investments
The new Majedie portfolio Geographic Split Industry Split 3. Direct Investments 15 directly held investments in public equities, each listed in the developed markets. All of which meet Marylebone Partners’ quality and growth criteria. Technology A combination of ‘quality compounders’ and ‘unap
Slide 20: Direct Investment Examples
Direct Investment Examples Wabtec Corporation Breedon Group plc Thermo Fisher Scientific Inc. Equities Equities Equities Wabtec is a leading global provider of products and Breedon Group plc is a leading vertically-integrated Thermo Fisher Scientific Inc. (“Thermo”) is the largest services to the ra
Slide 21: Current positioning
Current positioning Now fully invested with no legacy positions Gilts Cash & Equivalents 3% 6% β-adj net exposure: ~60% Special Investments 10% 31% Absolute return External Managers 21% Direct Investments 29% Equity-centric External Managers Source: Marylebone Partners LLP. As of 31 October 2023. No
Slide 22: A portfolio of structurally uncorrelated investments
A portfolio of structurally uncorrelated investments Idiosyncratic return drivers should result in a complementary yet positive outcome 24-month cross correlation between Majedie Investment PLC’s portfolio of holdings (excluding Special Investments) Correlation guide High Moderate positive Negligibl
Slide 23: Performance & Attribution
Performance & Attribution Attribution analysis (i) Share Price & Net Asset Value (Debt at Fair Value) 25 th January to 30 th September 2023 30 th September 2022 - 31st October 2023 350 300 +112 bps 250 +54 bps pence per share +29 bps 200 150 -134 bps 100 Share Price NAV (Debt at FV) 50 Special Exter
Slide 24: Summary
Summary An exciting future for Majedie Investments PROPOSITION TERMS Differentiated returns through three distinctive, Flat fee structure based on market capitalisation. complementary and fundamental strategies. Staggered as assets grow. Equities remain at the heart of the approach. Incent
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