Hi Barry, I went onto your site and read up about the company, however maybe its my ignorance...I didn't see anything that said wow to me...can you please help me try understand what you see in this company?
Glad to receive comment from you again...First of all three namely Coronation ,Anchor and Peregrine are all asset managers, but only Peregrine is also trustees and wealth managers as well....Their PE ratio and dividends that are about to be paid make this a cut above the others as it traded under the radar whilst Coronation attracted all the attention....See Patrick Cairns article as well on Moneyweb on the 29 June 2015.
Just to add onto Barry's comment. Bought this at about R16 in Dec 2013. This was really a turn around business. I think at one stage another company wanted to buy out peregrine(If I remember correctly). Technically it was trading sideways for a very long time until it started trending upwards and volumes started to increase. bought when the PE was about 8 and this was really coronations shadow as coronation's price at the time was rocketing. Peregrine also acquired java capital and cannon asset managers. (Once again if I recall correctly). This was actually skaap's pick and formed part of his portfolio when he mentioned his stocks in his portfolio at one stage. Peregrine was amongst his picks and I did extensive research on Peregrine and I liked it very much at the time, and decided to buy. So really credit to Skaap.
The problem with these shares is that this business is a proxy for the markets -and if the markets go to stupid prices - either way - then so do these shares. Ditto insurers - but even some of these don't fit quite into this market up market down camp.
disagree entirely with your statement that they are a proxy to the market. I bought Peregrine in Aug 2013, and it is up over 200% - one helluva market proxy if you ask me. Coronation, since 2009, is a 20 bagger )being up almost 2000% (pity I only bought in 2013 too). One helluva proxy! In reality, while performance fees are what gets them their money - it is the rate at which they grow their funds which really drives them. The more money that gets pumped into the JSE, and the more market share they get to consume, the larger their assets under management. Even modest performance fees can equate to a massive increase in earnings if they grow their assets under management