Tetragon Financial Group Ltd (LSE:TFG) (H1 2024) Earnings Call Highlights: Navigating Gains and ...

In This Article:

  • Fully Diluted NAV per Share: $31.50 at June 30, with a total return of 1.9% for the first half of 2024.

  • Annualized NAV per Share Total Return Since IPO: 10.3%.

  • Return on Equity (ROE) for H1 2024: 1.3% net of all fees and expenses.

  • Average ROE Since IPO: 11%.

  • Dividend Declared for Q2 2024: $0.11, totaling $0.22 year to date.

  • Dividend Yield: Approximately 4.3% based on the quarter-end share price of $10.30.

  • Shareholder Returns via Tender Offer: $25 million returned during H1 2024.

  • Investment Income Impact on NAV per Share: Increased by $0.82 per share.

  • Operating Expenses and Fees Impact on NAV per Share: Reduced by $0.26 per share.

  • Interest Expense Impact on NAV per Share: Reduced by $0.14 per share.

  • Gross Dividends Impact on NAV per Share: Reduced by $0.22 per share.

  • Net Dilution Impact on NAV per Share: $0.40 per share.

  • Share Repurchases Impact on NAV per Share: Increased by $0.57 per share.

  • Aggregate Investment Performance for H1 2024: Gross profit of $73 million.

  • TFG Asset Management Gains: $92 million.

  • Hedge Fund Strategies Loss: $2 million.

  • Bank Loans through CLOs Loss: $12 million.

  • Real Estate Loss: $5 million.

  • Private Equity and Venture Capital Gain: $29 million.

  • Legal Assets Gain: $2 million.

  • Other Equities and Credit Loss: $32 million.

  • Cash at Bank Balance as of June 30: $7 million.

  • Net Cash Balance: Negative $365 million.

  • Credit Facility: $400 million with $300 million drawn as of June 30.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tetragon Financial Group Ltd (LSE:TFG) achieved a NAV per share total return of 1.9% for the first half of 2024, with an annualized NAV per share total return of 10.3% since its IPO.

  • The company declared a dividend of $0.11 for the second quarter, representing a yield of approximately 4.3% based on the quarter-end share price.

  • TFG Asset Management, the private equity holdings in asset management businesses, recorded an investment gain of $92 million during the period.

  • Tetragon's investment in Equitix made a gain of $77 million, driven by higher valuations and dividend income.

  • The company has returned approximately $1.7 billion to investors through dividends and share repurchases since inception.

Negative Points

  • The NAV per share total return for the first half of 2024 was below the company's long-term target and most equity market indices.

  • Hedge fund strategies, event-driven equities, and convertibles and credit lost $2 million in aggregate in the first half.

  • Bank loans through CLOs recorded a loss of $12 million in the first half of 2024.

  • Real estate investments had a loss of $5 million during the first half, mainly from US-focused funds.

  • The segment of other equities and credit generated a loss of $32 million during the first half of 2024.