Company profile - Aberdeen Asian income fund feature image - 28062019- JPGmoney & pens

Tetragon Financial Group

LN: TFG

$1348.1m market cap

$9.65 last close

TFG’s investment objective is to generate distributable income and capital appreciation, aiming to provide stable returns to investors across various credit, equity, interest rate, inflation and real estate cycles. TFG’s investment portfolio comprises a broad range of assets, including a diversified alternative asset management business, TFG Asset Management, and covers bank loans, real estate, equities, credit, convertible bonds and infrastructure.

Investment summary

Tetragon Financial Group (TFG, Tetragon) achieved a 13.6% NAV/share total return and a 13.4% ROE in FY19, in line with its long-term target of 10–15%. The main driver of Tetragon’s performance was its asset management business (TFG Asset Management), which comprises managers with a total AUM attributable to Tetragon of US$27.4bn and generated an EBITDA of US$59.5m in FY19 (up 51% y-o-y). The late-2019 investment activity left Tetragon with a relatively low net cash position (4.1% of NAV at end-April). The shares trade at a three-year average discount to NAV of 44% (currently at 62.7%), which is relatively wide compared to peers given the company’s track record of delivering a 16% NAV TR pa over the last 10 years. The recent market sell-off has so far resulted in a 5.1% decrease in NAV (ytd to end-April 2020).

Share price graph
Price performance
%
1m
3m
12m
Actual 9.0 (15.4) (22.5)
Relative* (1.3) (8.5) (12.8)
52-week high/low US$12.6/US$7.0
*% relative to local index
Key management
David O’Leary Independent Directors
David Wishnow Principal of Investment Manager
Deron Haley Independent Directors
Michael Rosenberg Principal of Investment Manager
Paddy Dear Co-Founder and Director
Reade Griffith Co-Founder, Director & Head of Inv. Committee
Stephen Prince Head of TFG Asset Management
Steven Hart Independent Directors

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