Hi Gerling,TGP is essentially a LIC that holds shares in HPI,...

Hi Gerling,

TGP is essentially a LIC that holds shares in HPI, TOT and a small amount of other things. The NTA like you said is probably around 0.60/s but i have not checked this recently.

It also has a sub scale funds management business and should be valued at nil.

The 1.5% management fee I mention is the overheads for executive management and operating costs like office, administrative costs etc. They also award themselves short and long term incentives in addition to their salaries which act as a performance fee.

So quite rightly, this vehicle should trade at a discount to it's NTA because you can very easily create their portfolio and not be encumbered by their ongoing costs, incentive plan and additionally have the liquidity of being in the underlying HPI and TOT shares.

To invest here, you need to have a view on HPI / TOT and also the appropriate discount to NTA.

However, I am not close to a buyer of either HPI / TOT and do not believe either is attractively priced. Although, if they fell to levels that were attractive and TGP was trading at a large discount to NTA, then it would be worth looking into.

I actually rate Tony and team but this is just not a compelling buy at the moment.