Tetragon Financial Group Limited Edison reviews Tetragon Financial Group (TFG/TFGS)
Tetragon Financial Group Limited
13 November 2020
London, UK, 13 November 2020
Edison reviews Tetragon Financial Group (TFG/TFGS)
Tetragon Financial Group (Tetragon) reported a 1.0% decrease in
NAV in 9M20 in total return terms. NAV has so far proved resilient
to market volatility, while Tetragon's shares followed the market
sell-off in Q120 and lagged the following market recovery. This
resulted in a historically high discount of 61%. Tetragon
maintained its quarterly DPS of US$0.10 after reducing it in Q120
(implying a 4.3% annualised yield). In the current economic
environment, Tetragon intends to increase its exposure to CLOs, as
well as continue ramping up its private equity investments through
Hawke's Point and Banyan Square Partners. Tetragon also launched a
litigation finance venture (Contingency Capital).
Tetragon's share price did not fully recover with the broad
market rebound which, coupled with resilient NAV, currently
translates into a discount to end-September NAV of 61%. This
represents a recovery from an all-time high of 72% recorded in
March 2020, yet is still much wider than the 10-year average of
42%. Tetragon distributes its income to shareholders through
dividends, as well as frequent share repurchases, and recently
announced a new tender up to US$25m.
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(END) Dow Jones Newswires
November 13, 2020 03:00 ET (08:00 GMT)