H&g High Conviction Ltd. · ASX:HCF
H&g High Conviction — Investor Presentation (March 2023)
14 slides from H&g High Conviction's investor presentation, Mar 2, 2023
Slide 1: Investor Presentation
ASX: HCF Investor Presentation March 2023 “The intelligent investor is a realist who sells to optimists and buys from pessimists.” - Benjamin Graham (Warren Buffett’s mentor) H&G Investment Management Ltd (ACN: 125 580 305) on behalf of H&G High Conviction Limited (ACN: 660 009 165)
Slide 2: Important Information
IMPORTANT INFORMATION Status of this document This document contains information regarding H&G High Conviction Limited (HCF). All information contained in this document (including this notice) (Information) is confidential, incomplete, and subject to change. By receiving the Information you are deem
Slide 3: Long-term market outperformance
Long-term market outperformance Since Pre-tax performance as of 3 12 2 years 7 years 10 years inception 31 January 2023 months months p.a. p.a. p.a. p.a HCF Pre-Tax Total Return* 15.7% 18.9% 17.2% 8.9% 9.6% 7.9% ASX Small Ordinaries 7.6% -4.4% 1.0% 8.4% 5.4% 1.2% Accumulation Index Relative performa
Slide 4: Where we fit in the LIC landscape
Where we fit in the LIC landscape The thirty-four Australian equity LICs as reported by Bell Potter & HCF Reported Strategy HCF* Bubble size indicates last reported Micro number of holdings Micro/small Small/Mid Mid/Large Large ← Negative Positive → 1 Year Return *Performance data, as applicable, in
Slide 5: Point of difference & alignment
Point of difference & alignment UNIQUE POINT DEEP VALUE ACTIVE ENGAGEMENT PROVEN TRACK OF DIFFERENCE Concentrated portfolio of Close relationship with RECORD Access to the knowledge, overlooked and undervalued management & board Long-term superior returns experience and networks of companies with li
Slide 6: Attractive businesses at attractive prices
Attractive businesses at attractive prices We invest in and actively engage with undervalued microcap companies The opportunities we seek What we do Significant mispricing Intensive due diligence across entire universe of microcaps to unearth select bargains Discounts to inherent value Thorough rese
Slide 7: A selected portfolio of companies on a journey
A selected portfolio of companies on a journey Every firm has its own needs, return/risk, and time to maturity PTG PVE IRR1 CAF KIL CNW New Positions Lifecycle of investment2 1. IRR is presented as a notional concept; no exact figure should be inferred from positioning on this axis. Includes realise
Slide 8: Team available to HCF
Team available to HCF A lifetime of experience PORTFOLIO MANAGEMENT GOVERNANCE & INVESTMENT COMMITTEE PLUS, THE WIDER H&G GROUP 30 YEARS 8 YEARS 30 YEARS EXPERIENCE EXPERIENCE EXPERIENCE DAVID GROVES JOSEPH CONSTABLE SANDY BEARD CHAIRMAN DIRECTOR & PORTFOLIO MANAGER CHAIRMAN – H&G & HGIM 25 YEARS 4
Slide 9: Last time we were in front of you
Last time we were in front of you Achieving targets we set and explanations for where we have missed What we said What we’ve done Invested $1m into Proptech (ASX: PTG), which subsequently attracted a Take advantage of “tech wreck” in mid-late 2022 takeover bid and produced a realised 230% IRR Invest
Slide 10: Why buy shares in HCF?
Why buy shares in HCF? Continuing our strong momentum Exposure to overlooked and undervalued companies portfolio managed by specialists in microcap investing Intention to pay fully franked dividends Investing cash in a buyer’s market following 2022 microcap sell- off with numerous recapitalisation o
Slide 11: Thank you for your time
Thank you for your time Value of $10,000 invested since inception as at 31 January 2023 $35,000 $31,686 $30,000 $25,000 HCF Pre-Tax Total Return $20,000 ASX Small Ords Accumulation Index $15,000 $11,976 $10,000 $5,000 $- *Includes the original vehicle since inception, H&G High Conviction Fund, launc
Slide 12: Appendices
APPENDICES 1. Structure and fees 2. Portfolio overview
Slide 13: Structure and Fees
Structure and Fees ASX-listed $65m Hancock & Gore market cap diversified (“H&G”; ASX: HNG) investment group 100%-owned Investment management agreement H&G Investment ASX Listed Private Equity H&G High Conviction Investments Investments Management Ltd Limited (ASX: HCF) (HGIM) Management fee 1% of gr
Slide 14: Portfolio Overview
Portfolio Overview As at 28 February 2023 Top Holdings % of Gross Portfolio Primary exposures as a percentage of total equities allocation Po Valley Energy 15.6% Energy, 26% Kiland 12.3% 26% Real Estate/Land, 20% 5% Financials, 20% Centrepoint Alliance 7.7% Information Technology 14% 8% Hillgrove Re
H&g High Conviction — Investor Presentation (March 2023) on 6ix