Ann: Funds Under Management - January, page-22

Hi @SP500
I have PTM as a small position currently. The business is relatively inexpensive and will conservatively pay 22c in dividends with franking this represents a yield of 12%.

This is their short book as of Sept 21, the dec 21 isn't publicly available until end of feb.

If the market conditions continue to be unfavourable to unprofitable growth stocks and ARK funds; Platinum funds should do okay. This is assuming a similar short exposure which given the performance seems likely.


I'm not super familiar with this business compared to magellan and GQG but it seems like a decent short-term allocation (6-18 months). I think the share price came under pressure due to the sale of Kerr's wife after their divorce recently. They have conducted buy-backs in the past when the dividend yield approached double digits which is another option.

Platinum capital (PMC) is paying around 6.5% fully franked which is another option. One would think if the flows stabilised with another 6 months of outperformance the share price could easily return to 3$+.





PMC.ASX


PTM.ASX

PTM performance in the two periods highlighted (Excl. dividends)
First bubble performance +64% (When PMC went up)
Second bubble performance -31% (When PMC went down)

One also needs to be mindful that Platinum charge a premium over competitors which may be cut if outflows increase materially and / or is unjustified by poor performance. I'm much more confident in GQG and PAC which is a more material part of my holdings.

I hope this helps,
Plague.