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BAF, BLUE SKY ALTERNATIVES ACCESS FUND LIMITED
nipper
post Posted: Feb 17 2020, 02:16 PM
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QUOTE
The negotiations with Wilson Asset Management, KordaMentha, Oaktree and other stakeholders, continue as we work with our legal advisers to settle the final terms of the manager transition. The other stakeholders referred to include the management teams created out of the former Blue Sky Group that are now partly owned by Oaktree; namely Argyle Group, January Capital and Fortitude Investment Partners.

We hope to be in a position to advise of meaningful new developments shortly.
lawyers field day



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jan 16 2020, 03:03 PM
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Interview by Alan Kohler with BAF head

https://omny.fm/shows/ceo-interviews/michae...ves-access-fund

It's 26 minutes long. Yes it's complex unwinding the prior setups and the complexity is challenging, yes the Wilson tie-up still looking a goer, yes the existing/ remaining assets are fundamentally solid but the lack of transparency is part of the sub NTA pricing issue.

Expect a name change, and a desire to employ the 30% cash now sitting there. Will have a new emphasis on Alternatives under a new team, no firesales, likely to let existing assets run, and to move into private debt and infrastructure. And remove the discount to NTA (somehow).




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Nov 13 2019, 05:05 PM
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Shareholders of BAF have been waiting for a year for news on its future management plans after negotiations with an entity owned by Pinnacle Investment Management and Andrew Champion collapsed. The LIC had warned mid-month that fresh negotiations to appoint a new manager were "incomplete" and that other options such as an orderly wind down of the portfolio were under consideration.

Mr Wilson told the meeting that his aim was to get the business to a $1 billion firm, saying "I see no reason" why that wouldn't be possible. [He] acknowledged that a shift into the alternatives space would be a new avenue for Wilson Asset Management but appeared undaunted by the task.

"There is enormous demand for the alternative space in Australia," he said. "Our plan is to get Blue Sky trading at true value – to get the share price to reflect the NTA [net tangible assets]." Blue Sky's LIC trades at a 22 per cent discount to NTA.

Mr Wilson takes the view that the long process to appoint a manager has "tightened up the share register and all the stale bulls and non-believers have gone". He said on the sidelines of the annual meeting that WAM planned to charge a 1 per cent management fee for a five-year agreement, and would not charge a performance fee.

https://www.afr.com/markets/equity-markets/...20191113-p53a3t



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Nov 13 2019, 11:09 AM
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Following an extensive process, BSAAF, BAF’s current manager and BAF have reached a consensus on key commercial terms (on a without prejudice and without admissions basis) to facilitate a consensual transition of BAF’s management rights to Wilson Asset qManagement. This consensus is not final and remains subject to further negotiation and conditions




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 21 2019, 11:23 AM
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Following the appointment by Oaktree Capital Management L.P of KordaMentha as receivers and managers to Blue Sky Alternative Investments Limited (BLA) on 20 May 2019, your Board have been engaged with KordaMentha and Oaktree to discuss the impact the receivership of BLA has on the appointment of a replacement manager to BAF.

Consideration continues to be given to a range of possible options, including termination of the exclusive management services agreement between BAF and its manager BSAAF Management Pty Limited, other possible actions under the MSA and an orderly wind-down of BAF and return of capital to BAF shareholders.

As part of those considerations of possible options, discussions have been ongoing between BAF and BSAAF on a without prejudice basis. BSAAF’s interests in these discussions have been represented by KordaMentha in their capacity as receivers and managers of BLA. Oaktree has also been directly involved in these discussions.

Since 20 May 2019, the Chairman of BAF, as well as Oaktree and KordaMentha, have received a number of approaches from organisations interested in becoming BAF’s investment manager. We continue to believe that it is in the best interests of all BAF shareholders for an orderly replacement manager transition to occur. In pursuit of this objective, BAF, KordaMentha and Oaktree are exploring, on a without prejudice basis, a new replacement manager process under which KordaMentha will issue a request for proposal seeking proposals from five pre-selected candidates to replace BSAAF as manager of BAF.

In addition to any alternate proposals that may be submitted, the proposal from Wilson Asset Management International Pty Limited remains current and this proposal has automatically been included in the process.

The selected candidates will be given a short period to submit proposals and following that period BAF will select one preferred replacement manager candidate to enter into a short period of exclusive due diligence.
- still "stubbornly" around 80c and well off that aspired NTA. For good reason, I think; going to be a long drawn out process.... and I'd be suspicious of Oaktree all along the way.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: mullokintyre  
 
nipper
post Posted: Jul 15 2019, 10:26 AM
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A bit of double talk, or valuation disconnect, going on here ?
QUOTE
The pre-tax NTA of the Alternatives Fund increased by 2.1 cents per share, or 1.9%, to $1.1343 per share in June. The growth in NTA was largely driven by an increase in carrying values of several assets across the portfolio.

During the month, the Alternatives Fund continued its on-market share buy-back program and acquired an additional 315,147 shares at an average price of $0.7222 representing a 36% discount to June’s pre-tax NTA. The buyback will recommence following lodgement of this report.

The Board would like to acknowledge the significant work undertaken by the manager to strengthen and improve the valuation process including the appointment of a new valuer, streamlining processes and increasing the transparency of the valuation process supporting the individual asset values. The Board has every confidence that these changes will enhance the robustness of the Company’s financial statements.
- Investors happy to get out, at a big discount. Those buying would have the opposite view.

Currently trading around 77c.

Truth lies in the middle, or is it just an illiquidity / visibility discount?




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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nipper
post Posted: Jul 12 2019, 10:04 AM
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During June, the directors of BAF invited GVF portfolio manager, Miles Staude, to join the BAF Board. Miles is looking forward to working with the existing BAF directors in their efforts to ultimately see the substantial underlying value within the company realised for the benefit of all shareholders.

- GVF hold 10,868,143 ordinary shares in BAF, according to the Initial Directors notice
(and saw something about the Student Housing holding likely to be sorted out in an acceptable manner, in next few months)




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jun 14 2019, 10:56 AM
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In Reply To: mullokintyre's post @ Jun 14 2019, 10:37 AM

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... water rights are the asset I think will do very well..
I think so, too.

Duxton Water D2O is a cleaner, more liquid exposure, if you are interested.

(But now we are in drought, I noted a rant on some TV current affairs (sic) program lambasting Corporate gougers ripping off the little man, by controlling Murray-Darling water rights. Either you have a method of price signals or you don't; no system is perfect and with environmental flows / States rights / politics of envy a sad reality, any scarce resource is going to become a political football. IE Risk abounds !!)

PS: BAF may not be too much of a long-term thing, unless WAM gets hold of it. With BLA in hands of administrators, assets (co-owned with BAF) will be realised, the easier ones first then the vultures picking over some of the more problematic capital-hungry ones down the track.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Jun 14 2019, 10:37 AM
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In Reply To: nipper's post @ Jun 14 2019, 10:09 AM

Today, I have bought into BAF for a long term hold.
Their water rights are the asset I think will do very well.

Mick



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sent from my Olivetti Typewriter.
 
nipper
post Posted: Jun 14 2019, 10:09 AM
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One portfolio position that has generated some interest from our shareholders recently is the company’s investment in Blue Sky Alternatives Access Fund. There has been no shortage of press written about the unfortunate demise of Blue Sky the asset manager over the past year. There is an important difference however, between Blue Sky the asset management company (BLA), and Blue Sky Alternatives Access Fund (BAF), an investment fund. The former is an operating business driven by revenues and costs, the latter is a portfolio of assets.

At our core at GVF we are asset traders, looking for assets where we see compelling value and where we believe we can be involved in the process of unlocking this value over time. A key part of our investment thesis in BAF is that the substantial ‘noise’ generated by the failure of the manager has created a compelling value opportunity in the fund.

Currently c.40% of the BAF investment portfolio is made up of cash at hand, and a portfolio of water rights. We estimate that these water rights have generated a return of more than 30%3 over the past 12 months. They also were subject to an unsolicited buyout offer at their carrying value late last year by Chris Corrigan and Peter Scanlon, two high profile Australian investors.

In simple terms, if you assume BAF’s cash and water assets are worth book value, the market price of BAF today values the rest of the investment portfolio at approximately 40 cents on the dollar. While not without risks, we believe the current value proposition is very compelling. We have been energetically engaged with both the BAF board and Blue Sky the asset manager since building a position and we expect to be able to update investors on the progress of those engagements soon.
- from Global Value Fund (GVF) monthly update



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: mullokintyre  
 
 


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