Fairfax India new issue

[73 Reds]

12 hours ago, This2ShallPass said:

I think the setup is getting better as BIAL markups will continue at the pace of the last 2 quarters. In terms of the stock, without an IPO it'll continue to trade at a discount or the discount could get bigger as the potential buyer pool is small(fees turnoff many investors).

 

I have got this to a position size where I can live with it being sideways for a while. I also don't mind reducing the position a bit when I need to buy something that's more compelling in the short term (sold some last week to buy Constellation).

 

 

Yeah; for some time now I've been investing spare pocket change in this every time it gets cheap like the current price.  Dribs and drabs slowly add up and it seems that repricing is not a matter of "if" but a matter of "when".  Haven't sold any when the price approached $20 b/c it is clearly worth more.  Unless one believes that management has no interest in rewarding shareholders, this seems like a no-brainer to me.    

[UK]

On 4/2/2026 at 12:25 PM, gfp said:

I'm surprised it hasn't been brought up more, but what initially turned me off was the Nepo-hire.  Like many, I was fine with Ben on the FFH board of directors to represent the family's control shares and keep the culture just like I am fine with Farmer Howie and his weird sister sitting on the board of directors of $1 trillion systemically important Berkshire for similar reasons.

 

But making Ben chairman of FIH was a big turn off for me.  So I was paying very close attention at his first annual meeting and I was pleasantly surprised and now I have no issue with Ben the nepo-hire at the top of FIH.u...

 

I would second this, and I will not critizise BRK too, because it is just on the board level, but I like the succesion situation in FFH complex because of Ben much better:)

[This2ShallPass]

8 hours ago, 73 Reds said:

Yeah; for some time now I've been investing spare pocket change in this every time it gets cheap like the current price.  Dribs and drabs slowly add up and it seems that repricing is not a matter of "if" but a matter of "when".  Haven't sold any when the price approached $20 b/c it is clearly worth more.  Unless one believes that management has no interest in rewarding shareholders, this seems like a no-brainer to me.    

This is a good approach, I might start following it. Nibbling here and there is ideal for this stock which moves sideways for long stretches.
 

I was also thinking about my exit strategy today. If there's no IPO and stock doesn't move up by at least 20% in a year, I will start reducing by position by 20% every year in January. I don't envision this happening as BIAL value continues to grow, but if it does end up being the case I need a plan.

The biggest risk / worst case I see is a take under by Fairfax. If you look at Atlas or Kennedy Wilson the pattern is there and we would be foolish to ignore it. And it will happen at the worst possible time! If Fairfax India drops to $10-12 or discount continues to get larger, we will be taken out at some point for a 20% premium. Especially as cash in parent FF continues to grow. I would be really upset if BIAL is taken away from us right when it's starting to explode, but I'm mentally prepared for it. 

If you're a poor shmuck who decided to buy Kennedy Wilson (partly because of the trust you had in Fairfax) and decided to hold through thick and thin, your 5 and 10 year return is a 50-60% permanent loss (permanent being the keyword). Sure they gave a 40% premium from the absolute lows Same with Atlas but just worse because you were the minority shareholder who helped fund the business during the early stages. 

 

[TwoCitiesCapital]

34 minutes ago, This2ShallPass said:

The biggest risk / worst case I see is a take under by Fairfax. If you look at Atlas or Kennedy Wilson the pattern is there and we would be foolish to ignore it. And it will happen at the worst possible time! If Fairfax India drops to $10-12 or discount continues to get larger, we will be taken out at some point for a 20% premium. Especially as cash in parent FF continues to grow. I would be really upset if BIAL is taken away from us right when it's starting to explode, but I'm mentally prepared for it.
 

 

I don't disagree. I view this as a risk everytime I enter as a minority investor alongside Fairfax. I was in and out of Kennedy Wilson, but bought near the lows. I didn't own Atlas. But there have been others as well. 

 

Ultimately though, those were all third parties Fairfax invested in and took under after problematic performance which allowed some semblance of control and recover of their investment thereafter. 

 

Fairfax India strikes me as different. Fairfax COULD have chosen to do this in house themselves, but opted to launch the vehicle instead. I'm guessing they wanted the fee income and a vehicle devoted entirely to India that didn't distract from the primary insurance co. I'm guessing those incentives still exist. 

 

Additionally, performance hasn't been challenged when measured by book - just challenged when measured by those who paid a premium to book now getting a discount to book...and Fairfax didn't pay the premium. 

 

 

Edited April 3 by TwoCitiesCapital

[This2ShallPass]

48 minutes ago, TwoCitiesCapital said:

Fairfax India strikes me as different. Fairfax COULD have chosen to do this in house themselves, but opted to launch the vehicle instead. I'm guessing they wanted the fee income and a vehicle devoted entirely to India that didn't distract from the primary insurance co. I'm guessing those incentives still exist. 

I hope you're right. Fairfax in 2015 was not as strong as they're now and FF India didn't have the crown jewel then. The fees might be our blessing in disguise:)

 

[SafetyinNumbers]

4 hours ago, TwoCitiesCapital said:

The biggest risk / worst case I see is a take under by Fairfax. If you look at Atlas or Kennedy Wilson the pattern is there and we would be foolish to ignore it. And it will happen at the worst possible time! If Fairfax India drops to $10-12 or discount continues to get larger, we will be taken out at some point for a 20% premium. Especially as cash in parent FF continues to grow. I would be really upset if BIAL is taken away from us right when it's starting to explode, but I'm mentally prepared for it.

This is a red herring. They have no interest in taking Fairfax India private in part because they get a capital benefit in the insurance subsidiaries from owning a TSX listed vehicle vs private Indian corporations. Also, Atlas isn’t a good example, Fairfax, didn’t put any new capital up. 
 

 

[SafetyinNumbers]

On 4/2/2026 at 7:25 AM, gfp said:

But making Ben chairman of FIH was a big turn off for me.  So I was paying very close attention at his first annual meeting and I was pleasantly surprised and now I have no issue with Ben the nepo-hire at the top of FIH.u...

I thought making Ben Chairman of FIH made a ton of sense. He’s going to be Chairman of FFH at some point and not CEO so it’s good for him to get practice in the job. The investment that gave me pause was the one making FFH an LP of Marval, but that’s proven to be a home run so it’s hard to be critical.

Edited April 4 by SafetyinNumbers

[hobbit]

On 4/1/2026 at 2:02 PM, CoGreenwich&Laight said:

As the Annual meeting is coming up, below are some updated figures. 

 

Fees paid out to FFH now total $572 million.  That compares to market cap added or value created of $778 million. In 11+ years what have shareholders received? ~4.5% compound return.

 

Including G&A fees paid, to subsidize the super-voting shares (50 to 1 vote thus are more valuable), fees paid out now total $648 million.  Is it ethical to charge G&A fees pari passu when the value creation is disproportionate? What happens at Berkshire? Should FFH be charging G&A fees on top of Investment & Advisory?

 

In the last three years, FFH has been paid close to $150mm, excl performance fees. They've made ONE new investment, Global Aluminum in late 2024. One.

 

 

 

 

With the panoply of fees, FFH share basis is now negative $0.78 to negative $2.29 depending on how you want to look at it. Shareholders have received nothing. Zero.

 

 

Does it matter what the fees are if we are getting a good risk adjusted return? or a return as indicated by PW to be expected of 15% net to invest in India?

 

Is it gaslighting by management, and servile rabid mouthpieces on various platforms when touting shareholder friendly buybacks, when for the last two years, the pace has dropped off to anything but significant? Half a percent of shares outstanding per year? Mgmt has issued 149mm shares over 11 years, and 134mm remain outstanding today.  Is that much different from the SBC equivalent buybacks criticism against tech companies? Particularly when you shout out value being much higher than book, and the shares trade at a fraction of book?

 

 

The excuses of low share repurchases due to illiquidity does not hold water...its already there, has been for a while, and wont change. That ship has sailed a while ago. The likelyhood of trading at fair value, to be able to issues shares and enhance liquidity fairly is miniscule.

 

Today the implied value of BIAL in the share price is $380mm, a discount of 80+% to marked value, or higher to theoretical intrinsic value. Should management be doing anything but buying back their own shares, hand over fist? Just interest and dividends added up to over $115mm over the last two years relative to ~$20mm spent on buybacks, never mind Net realized gains of $270mm. With single digit compounding of bvps, relative to the risk, and objectives, have they earned the right to invest elsewhere with the shares trading at perhaps close to 50% or less of intrinsic value? While there are other forward thinking steps to get the shares to fair value, a discussion for another day, no investment they will find could be superior to BIAL at this discount. 

 

Silence equates to complicity? 

 

 

 

 

 

 

 

 

This is painfully misinformed and highlights short term bias. If they announce a 10B BIAL IPO tomorrow , would you want them to change their fee structure again as the fees will now be rightfully earned ? 

 

I think FIH team should ignore all the noise around share performance and fees and continue executing. If you want to criticize FIH mgmt, why don't you pushback on the individual investments? A good argument would be explaining to us why BIAL wont be a 25-30B asset in 8-10 years time and if that is accurate every single penny should go into buying more of BIAL shares than short sighted buybacks to hit a certain rate of return in the short term. Apart from NCML, their investments have been solid and that should always be the focus. 

[gfp]

I think this has been a good price to buy the stock and I have been buying it.  If it goes lower next week it will also be a good time to buy the stock.  We are investors here, we don't like to pay high prices, any negativity helps us.  The money is made in the buying after all.

[SafetyinNumbers]

1 hour ago, gfp said:

I think this has been a good price to buy the stock and I have been buying it.  If it goes lower next week it will also be a good time to buy the stock.  We are investors here, we don't like to pay high prices, any negativity helps us.  The money is made in the buying after all.

Will the P/BV multiple touch 1.2x or 1.5x first? It’s at ~1.35x now.

[gfp]

3 hours ago, SafetyinNumbers said:

Will the P/BV multiple touch 1.2x or 1.5x first? It’s at ~1.35x now.

 

Are you talking about Fairfax Financial or Fairfax India?

[SafetyinNumbers]

40 minutes ago, gfp said:

 

Are you talking about Fairfax Financial or Fairfax India?

Insurance market analysis

 

Sorry, didn’t realize we were in the India group. Fairfax Financial. Fairfax India is trading at a discount to book value right now. Not 1.35x. It might trade above book value again after the BIAL IPO is announced and before it closes but I wouldn’t expect it to last. FFH I think will eventually get to 3x BV in a hard insurance market. I don’t know if it will hit 1.2x BV before that happens though. 

Edited April 6 by SafetyinNumbers

[Hoodlum]

It would seem the government may try to push through the IDBI Bank divesture, as they don't want to restart the whole process again.  

 

https://economictimes.indiatimes.com/industry/banking/finance/banking/centre-may-seek-revised-bids-from-two-suitors-for-idbi-bank/articleshow/130085623.cms?from=mdr

 

New Delhi: The government may ask for revised financial bids from two potential buyers of IDBI Bank as their original bid amounts were lower than the reserve price fixed for the strategic sale of the lender, sources said.
 

"The IDBI Bank strategic sale is in the technical evaluation stage," a senior official told PTI.

 

Amidst the West Asia crisis, the government is banking on disinvestment and asset monetisation to garner resources and create fiscal space for measures to shield the economy from the global uncertainty, officials said.

 

After over three years of pursuance, the strategic sale of IDBI Bank had reached the final stage of financial bid, and the government does not want to restart the process again to avoid further delay.
 

Sources said that the government has now restarted work to take forward the IDBI Bank strategic sale to a logical conclusion.

 

[SafetyinNumbers]

2 hours ago, Hoodlum said:

It would seem the government may try to push through the IDBI Bank divesture, as they don't want to restart the whole process again.  

 

https://economictimes.indiatimes.com/industry/banking/finance/banking/centre-may-seek-revised-bids-from-two-suitors-for-idbi-bank/articleshow/130085623.cms?from=mdr

 

New Delhi: The government may ask for revised financial bids from two potential buyers of IDBI Bank as their original bid amounts were lower than the reserve price fixed for the strategic sale of the lender, sources said.
 

"The IDBI Bank strategic sale is in the technical evaluation stage," a senior official told PTI.

 

Amidst the West Asia crisis, the government is banking on disinvestment and asset monetisation to garner resources and create fiscal space for measures to shield the economy from the global uncertainty, officials said.

 

After over three years of pursuance, the strategic sale of IDBI Bank had reached the final stage of financial bid, and the government does not want to restart the process again to avoid further delay.
 

Sources said that the government has now restarted work to take forward the IDBI Bank strategic sale to a logical conclusion.

 

Makes sense. The reserve price must be falling fast with the number of shares trading 70 and below. 

[giulio]

https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-sale-of-equity-interest-in-sanmar-chemical-enterprises-limited-2026-04-09/

[Madpawn]

Fairfax India Announces Sale of Equity Interest in Sanmar Chemical Enterprises Limited

Headline: Approximately US$27 million at current exchange rates. Following the sale, Fairfax India has no economic interest in SCEL. https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-sale-of-equity-interest-in-sanmar-chemical-enterprises-limited-2026-04-09/

 

From annual letter (march 2026), Sanmar was valued at US$101M compared to $201M as presented in April 2025's annual shareholder - Is this worrying to anyone else? The whole thesis around FIH is accurate valuation of private assets and we're seeing one of them being sold at 70% discount less than a month after latest communications, not to mention the announcement was oddly dry and straightforward with no explanations.

Edited April 9 by Madpawn

[SafetyinNumbers]

20 minutes ago, Madpawn said:

Fairfax India Announces Sale of Equity Interest in Sanmar Chemical Enterprises Limited

Headline: Approximately US$27 million at current exchange rates. Following the sale, Fairfax India has no economic interest in SCEL. https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-sale-of-equity-interest-in-sanmar-chemical-enterprises-limited-2026-04-09/

 

From annual letter (march 2026), Sanmar was valued at US$101M compared to $201M as presented in April 2025's annual shareholder - Is this worrying to anyone else? The whole thesis around FIH is accurate valuation of private assets and we're seeing one of them being sold at 70% discount less than a month after latest communications, not to mention the announcement was oddly dry and straightforward with no explanations.

Sanmar has been a problem for a long time and most of the valuation was based on its publicly traded subsidiary unlike DCFs for the other private holdings. Definitely annoying but I don’t think it’s systemic.

[longlake95]

48 minutes ago, Madpawn said:

Fairfax India Announces Sale of Equity Interest in Sanmar Chemical Enterprises Limited

Headline: Approximately US$27 million at current exchange rates. Following the sale, Fairfax India has no economic interest in SCEL. https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-sale-of-equity-interest-in-sanmar-chemical-enterprises-limited-2026-04-09/

 

From annual letter (march 2026), Sanmar was valued at US$101M compared to $201M as presented in April 2025's annual shareholder - Is this worrying to anyone else? The whole thesis around FIH is accurate valuation of private assets and we're seeing one of them being sold at 70% discount less than a month after latest communications, not to mention the announcement was oddly dry and straightforward with no explanations.

This is worth asking about at the FIH meeting, if nothing else but to remind management that engaged shareholders are watching. It does smell like rotten eggs, but likely not a systemic issue. 

[giulio]

FIH put $300M in Sanmar in 2016 through bonds at 13%. they were redeemed for 434M in 2019. FIH then reinvested 217M and finally sold their stake for 27M. The loss is ~60M overall. Terrible investment, big opportunity costs but less bad than it might seem.

My guess is Sanmar would have required additional liquidity (as reported in AR 2025) and equity injections due to their debt level. Their raw materials costs possibly spiked up given the Iran war and higher oil prices.

IMO, FIH did well in taking the L and moving on. You can't get them all right!

[hobbit]

5 hours ago, giulio said:

FIH put $300M in Sanmar in 2016 through bonds at 13%. they were redeemed for 434M in 2019. FIH then reinvested 217M and finally sold their stake for 27M. The loss is ~60M overall. Terrible investment, big opportunity costs but less bad than it might seem.

My guess is Sanmar would have required additional liquidity (as reported in AR 2025) and equity injections due to their debt level. Their raw materials costs possibly spiked up given the Iran war and higher oil prices.

IMO, FIH did well in taking the L and moving on. You can't get them all right!

they also invested another 18M in dec 2025 as well for TCI rights issue. I do not understand the logic of selling at the bottom of the cycle unless India business is distressed again due to the macro. Sanmar India has already gone bankrupt once before as well

[CoGreenwich&Laight]

23 hours ago, giulio said:

FIH put $300M in Sanmar in 2016 through bonds at 13%. they were redeemed for 434M in 2019. FIH then reinvested 217M and finally sold their stake for 27M. The loss is ~60M overall. Terrible investment, big opportunity costs but less bad than it might seem.

My guess is Sanmar would have required additional liquidity (as reported in AR 2025) and equity injections due to their debt level. Their raw materials costs possibly spiked up given the Iran war and higher oil prices.

IMO, FIH did well in taking the L and moving on. You can't get them all right!

 

If you want to be truly complete regarding your calculations, to your 60mm you should add 10 years of fees...Unlike normal private investments that dont pay out till realization, here as you are aware we pay on their own self marked value...at year end it was being carried at 102mm...down 118 in the year, so 201 at BoY,...over 10 years bloated book and performance fees on a high % of book are not insignificant...they raised 1bn on IPO.

More importantly, it would be only normal for mgmt to have quarterly calls to discuss investments like these, why the 18mm investment and then the subsequent almost immediate exit...and not leave that to us to speculate. The list of topics is endless, the tax changes in mauritius etc...

Under the blankets, this is an airport asset. Even larger now of BV with this writedown. Undisputable. They should report detailed financials for the airport, like other normal airport companies, take quarterly calls to explain the movements in pax movements and YPPs (and its build ups), the impacts of Indigo and AI issues, new horizons etc...

Its not accretive to blindly defend this mgmt a la the Trump cabinet as many on this site do. Most of those defenses are pavlovian, illogical and devoid of facts, and they are done by severly conflicted people including those who own 11x more exposure in FFH than in FIH as they proudly self disclose. They are like the raving mullahs looking for low IQ recruits to strap on explosives for suicide missions, promising a sublime future. Exit your FFH, and own FIH for 11 years and you have the right to post, and perhaps the blinders will come off. You know who you are. [the nonsense of IDBIs fees, mkt vs book cagrs, lack of capital to return and to capitalize on disc shares, etc].

Only if mgmt changes their attitude will these shares reflect true value. And they can, the rest are excuses. If they had any morals they would have gone down that path a while ago, it is not rocket science. Ex BIAL, in composite the returns of this vehicle over a sufficiently long time are poor. Just like Sanmar, take the hit, convert to a BIAL only like structure, get an airport multiple, not a discount to some underperforming- poor governance - subservient board failing their fiduciary duty - BV. 

[SafetyinNumbers]

2 hours ago, CoGreenwich&Laight said:

 

If you want to be truly complete regarding your calculations, to your 60mm you should add 10 years of fees...Unlike normal private investments that dont pay out till realization, here as you are aware we pay on their own self marked value...at year end it was being carried at 102mm...down 118 in the year, so 201 at BoY,...over 10 years bloated book and performance fees on a high % of book are not insignificant...they raised 1bn on IPO.

More importantly, it would be only normal for mgmt to have quarterly calls to discuss investments like these, why the 18mm investment and then the subsequent almost immediate exit...and not leave that to us to speculate. The list of topics is endless, the tax changes in mauritius etc...

Under the blankets, this is an airport asset. Even larger now of BV with this writedown. Undisputable. They should report detailed financials for the airport, like other normal airport companies, take quarterly calls to explain the movements in pax movements and YPPs (and its build ups), the impacts of Indigo and AI issues, new horizons etc...

Its not accretive to blindly defend this mgmt a la the Trump cabinet as many on this site do. Most of those defenses are pavlovian, illogical and devoid of facts, and they are done by severly conflicted people including those who own 11x more exposure in FFH than in FIH as they proudly self disclose. They are like the raving mullahs looking for low IQ recruits to strap on explosives for suicide missions, promising a sublime future. Exit your FFH, and own FIH for 11 years and you have the right to post, and perhaps the blinders will come off. You know who you are. [the nonsense of IDBIs fees, mkt vs book cagrs, lack of capital to return and to capitalize on disc shares, etc].

Only if mgmt changes their attitude will these shares reflect true value. And they can, the rest are excuses. If they had any morals they would have gone down that path a while ago, it is not rocket science. Ex BIAL, in composite the returns of this vehicle over a sufficiently long time are poor. Just like Sanmar, take the hit, convert to a BIAL only like structure, get an airport multiple, not a discount to some underperforming- poor governance - subservient board failing their fiduciary duty - BV. 

Are you planning to speak at the AGM next week?

 

We disagree on almost everything. I think it’s because we have different time frames and different views on market structure (doesn’t seem to factor in your analysis), not because I’m conflicted, a Trump cabinet member or a mullah but you are entitled to your opinion. 

[Crip1]

9 hours ago, CoGreenwich&Laight said:

 

If you want to be truly complete regarding your calculations, to your 60mm you should add 10 years of fees...Unlike normal private investments that dont pay out till realization, here as you are aware we pay on their own self marked value...at year end it was being carried at 102mm...down 118 in the year, so 201 at BoY,...over 10 years bloated book and performance fees on a high % of book are not insignificant...they raised 1bn on IPO.

More importantly, it would be only normal for mgmt to have quarterly calls to discuss investments like these, why the 18mm investment and then the subsequent almost immediate exit...and not leave that to us to speculate. The list of topics is endless, the tax changes in mauritius etc...

Under the blankets, this is an airport asset. Even larger now of BV with this writedown. Undisputable. They should report detailed financials for the airport, like other normal airport companies, take quarterly calls to explain the movements in pax movements and YPPs (and its build ups), the impacts of Indigo and AI issues, new horizons etc...

Its not accretive to blindly defend this mgmt a la the Trump cabinet as many on this site do. Most of those defenses are pavlovian, illogical and devoid of facts, and they are done by severly conflicted people including those who own 11x more exposure in FFH than in FIH as they proudly self disclose. They are like the raving mullahs looking for low IQ recruits to strap on explosives for suicide missions, promising a sublime future. Exit your FFH, and own FIH for 11 years and you have the right to post, and perhaps the blinders will come off. You know who you are. [the nonsense of IDBIs fees, mkt vs book cagrs, lack of capital to return and to capitalize on disc shares, etc].

Only if mgmt changes their attitude will these shares reflect true value. And they can, the rest are excuses. If they had any morals they would have gone down that path a while ago, it is not rocket science. Ex BIAL, in composite the returns of this vehicle over a sufficiently long time are poor. Just like Sanmar, take the hit, convert to a BIAL only like structure, get an airport multiple, not a discount to some underperforming- poor governance - subservient board failing their fiduciary duty - BV. 

I appreciate the time and effort put in by you on your analysis. Thank you for sharing. It's quite often good to hear dissenting opinions. It allows those who are contemplating a position to hear pros and cons and allows for a better decision.

 

My concern is not with your negative assessment of FIH, rather, it's the manner with which you express it. "Trump cabinet", "raving mullahs" and "blindly defend" are examples of emotional critiques, rather than rational analysis. If someone disagrees with me on an investment, that actually makes perfect sense, because not everybody agrees on every investment. But when someone reverts to name calling and or denigration, it speaks less to objective analysis and more to manipulating others. 

 

If you think it's a bad idea to own it, all good. But to me, and I'd wager many others, the manor with which you express compels me to disregard your critiques.

 

-Crip

Edited April 11 by Crip1

[giulio]

14 hours ago, SafetyinNumbers said:

Are you planning to speak at the AGM next week?

 

We disagree on almost everything. I think it’s because we have different time frames and different views on market structure (doesn’t seem to factor in your analysis), not because I’m conflicted, a Trump cabinet member or a mullah but you are entitled to your opinion. 

As far as I am concerned, all your points are valid and well articulated. I am sure other posters find them useful as well: this is a discussion forum and if we all agreed with each other it wouldn't be fun and the learning opportunities would be far less.

If FIH is a big position for you, you should definitely attend the AGM and voice your concerns, just don't go there with the expectation to hear the answers YOU want.

I understand your frustration but there's not much the COBF can do, just sell it and be "psychologically short" a la Ackman.

 

FWIW, I sized the position taking into account positives and the negatives and I am not in love with the stock: if the upside materializes great (I might trim it, keep it at 5% and redeploy proceeds elsewhere), if not I'll just sell and move on without losing money and a second of sleep.

 

3 years ago I bought VW and Porsche Holding thinking there was 4x upside, limited downside thanks big cash balances and a family willing to surface value through buybacks, spinoffs, costs cuts and dividends. I lost 50% but the position was sized appropriately and didn't impact returns too much. I took the loss, learned my lessons and bought other stuff.

 

I encourage you to keep posting your analysis and discuss ideas. Just keep a joyful and playful attitude, we are blessed to be able to do this!

 

Best,

G

 

 

[73 Reds]

18 hours ago, CoGreenwich&Laight said:

 

If you want to be truly complete regarding your calculations, to your 60mm you should add 10 years of fees...Unlike normal private investments that dont pay out till realization, here as you are aware we pay on their own self marked value...at year end it was being carried at 102mm...down 118 in the year, so 201 at BoY,...over 10 years bloated book and performance fees on a high % of book are not insignificant...they raised 1bn on IPO.

More importantly, it would be only normal for mgmt to have quarterly calls to discuss investments like these, why the 18mm investment and then the subsequent almost immediate exit...and not leave that to us to speculate. The list of topics is endless, the tax changes in mauritius etc...

Under the blankets, this is an airport asset. Even larger now of BV with this writedown. Undisputable. They should report detailed financials for the airport, like other normal airport companies, take quarterly calls to explain the movements in pax movements and YPPs (and its build ups), the impacts of Indigo and AI issues, new horizons etc...

Its not accretive to blindly defend this mgmt a la the Trump cabinet as many on this site do. Most of those defenses are pavlovian, illogical and devoid of facts, and they are done by severly conflicted people including those who own 11x more exposure in FFH than in FIH as they proudly self disclose. They are like the raving mullahs looking for low IQ recruits to strap on explosives for suicide missions, promising a sublime future. Exit your FFH, and own FIH for 11 years and you have the right to post, and perhaps the blinders will come off. You know who you are. [the nonsense of IDBIs fees, mkt vs book cagrs, lack of capital to return and to capitalize on disc shares, etc].

Only if mgmt changes their attitude will these shares reflect true value. And they can, the rest are excuses. If they had any morals they would have gone down that path a while ago, it is not rocket science. Ex BIAL, in composite the returns of this vehicle over a sufficiently long time are poor. Just like Sanmar, take the hit, convert to a BIAL only like structure, get an airport multiple, not a discount to some underperforming- poor governance - subservient board failing their fiduciary duty - BV. 

I think many of your points are valid yet I own the stock anyway.  I'm one of those 11x shareholders favoring FFH over FIH but there are reasons for that which have nothing to do with a "right to post".  Looking forward to your comments after the Annual meeting which I assume you will attend.