Argo Group Ltd. (ARGO:LN) has been a consistent Top 7 holding for me since launching the blog last year. It currently represents 4.9% of my portfolio.
It was among the first handful of stocks I wrote up late last year (here & here). I also included it in my Baker’s Dozen for 2012. I followed up with another detailed write-up in May-12. [btw An asset manager series later that month may add useful context: Parts I, II, III, culminating in a Fortress Investment Group (FIG:US) write-up]. I then briefly revisited Argo in Oct-12 as part of my catalyst series.
I was pleased to note recently my Argo write-ups have actually proved the most popular with readers. Which certainly isn’t reflected in the performance of the share price: ARGO is actually down 20% YTD! Considering the UK market’s progress this year, and based on reader/investor feedback, it’s reasonable to suggest some/all of this price decline might have been avoided…
This compelled me to write to Argo’s management a month ago with a number of recommendations to enhance shareholder value, improve investor relations & disclosure, and to increase Assets under Management. I’m pleased to see the letter would appear to have reminded new/existing investors of Argo’s far higher intrinsic value, and its potential – the share price has subsequently rallied +15%. It also garnered some v useful shareholder feedback & support, which prompted me to send this follow-up letter to Argo last week:
‘December 12, 2012
FAO: Kyriakos Rialas, CEO
Andreas Rialas, CIO
Cc: Michael Kloter, Chairman
33-37 Athol Street
Douglas
Isle of Man
IM1 1LB
Dear Kyriakos & Andreas,
I’ve opted to address this letter to you both, as directors & the largest shareholders of Argo. Again, thanks to Kyriakos for his previous reply – I’m pleased to hear my ‘observations…will [be] take[n] into account’. Please note I am writing this letter on behalf of myself, Guy Thomas, and & a number of other shareholders. We currently represent an aggregate 5% shareholding in Argo.
I look forward to your careful consideration of my other recommendations. However, based on feedback to date, there is a widespread & more urgent focus among shareholders on a return of capital – ideally, via my…
