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The big shareholder groups in BBR Holdings (S) Ltd (SGX:KJ5) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.
BBR Holdings (S) is not a large company by global standards. It has a market capitalization of S$60m, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions don’t own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about KJ5.
Check out our latest analysis for BBR Holdings (S)
What Does The Lack Of Institutional Ownership Tell Us About BBR Holdings (S)?
We don’t tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it’s not particularly common.
There are multiple explanations for why institutions don’t own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. BBR Holdings (S) might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Hedge funds don’t have many shares in BBR Holdings (S). As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of BBR Holdings (S)
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of BBR Holdings (S) Ltd. Insiders own S$14m worth of shares in the S$60m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.