Edison Investment Research

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HarbourVest Global Private Equity

Opportunity amid UK market weakness

Review | Investment trusts | 19/09/2019

HarbourVest Global Private Equity (HVPE) has recorded a 12-month rise in NAV (based on a preliminary figure at end-July 2019) of 8.7%, which is a solid beat versus the public benchmark. Over the last six months, HVPE remained a net investor deploying US$202m into HarbourVest funds (compared to US$139m distributions), mostly on the back of the real assets deal in February. We note that despite HVPE’s limited UK portfolio exposure and long-term NAV outperformance vs UK equities, its short-term…

Canacol Energy

Record production achieved

Update | Oil & gas | 16/09/2019

On 24 August 2019, Canacol achieved a record production of 217mmscfd of natural gas. This is a significant milestone for the company in Colombia, as it has now surpassed production from the country’s declining offshore gas fields. This was made possible by the completion of the Jobo to Cartagena pipeline in July 2019, which supplied Canacol with additional export capacity. Canacol is now working with its partners to form a consortium to build and operate a new export pipeline to Medellin that…

Heliad Equity Partners

Portfolio clean up under way

Update | Investment trusts | 16/09/2019

Heliad Equity Partners is repositioning its portfolio following the management changes earlier this year. This involves the gradual disposal of holdings in listed companies (with stakes in DEAG Deutsche Entertainment and Cyan already entirely sold) and selected funding measures in non-listed companies (such as Springlane). The company also booked further write-downs on unlisted holdings in H119. The potential acquisition of flatex by a strategic investor at a price ahead of the market value remains…

Bragg Gaming Group

Doubling down on Oryx

Initiation | Technology | 12/09/2019

Bragg Gaming’s core asset is Oryx Gaming, a fast growing online B2B gaming solution provider. We forecast C$38.4m revenues in FY19, with continued double-digit revenue growth until FY22. The underlying Oryx business is cash generative and we estimate that group EBITDA margin will expand from break-even at H119 to 7.6% next year. Investment risk is high, largely due to the need for financing, but Bragg is strategically well positioned to make accretive M&A. Key milestones will be the development…

Ocean Wilsons Holdings

Sailing against the wind

Outlook | Investment trusts | 11/09/2019

We forecast Wilson Sons’ (WSON’s) EBITDA to fall 6% y-o-y this year, still affected by the sluggish Brazilian economy and a tough competitive environment, before rebounding 10% in 2020. However, our Ocean Wilsons (OCN) 2019 forecasts are boosted by good returns in the investment portfolio. The business continues to benefit from the stabilising effect of the diversification of earnings by activity and currency and ownership of its international investment portfolio (OWIL). The current…

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