Charlemagne Capital     (£CCAP)    10.5p   Mkt Cap £29m     EV £14m

With markets up and defying the usual Gexit issues I decided to do a spot of contrarian bottom fishing using the momentum screens (3m RSI <-15, 6m RSI <-25) combined with some basic value parameters PE<16x, ROCE >10% (with all the usual caveats that the PE could well be >15 in some of these companies as the EPS may be disappearing fast).  Sometimes this throws up interesting situations (aside from the JQW (LON:JQW) or Zanaga Iron Ore (LON:ZIOC) s of this world) where the baby has been thrown out with the bath water.

I came across Charlemagne Capital, with a StockRank of 97

Charlemagne is an Emerging Markets focused fund manager,
specialising in equities and in particular Eastern European equities. Hmmm popular at the moment !

Why is it potentially interesting?

Mkt Cap = £30m

No debt

Net Cash on B/S at H1 14 = $19.3m =  £12.5m

Also like Ashmore (LON:ASHM) it has seeded some new funds from its own balance sheet. The market value of these funds WAS $10m. Given that a fair proportion may be in E European start up funds I think its prudent to haircut this by 35% to account for negative market movements. So $10m * (1-0.35) = $6.5m = £4m

So overall net liquid resources roughly £16m

Therefore Enterprise Value is ROUGHLY £30m - £16m = £14m

OK so what about the funds it manages?

It manages 4 types of funds

Magna: The Magna Umbrella Fund plc is Charlemagne Capital's UCITS fund range. These funds are all managed on a fundamental, bottom-up stockpicking  investment process.

OCCO: This is an absolute (hedge) fund targeting Eastern Europe. Max volatility = 12%

Institutional: Charlemagne Capital manages a number of segregated regional and global accounts for its institutional clients.

Specialist: Charlemagne Capital's specialist funds include both long-only funds and closed-end property funds. Illiquid….

The asset gathering record is patchy with good growth in the higher margin Magna retail funds offset by the decline in the lower margin Institutional funds.

Unlock the rest of this Article in 15 seconds

or Unlock with your email

Already have an account?
Login here

About the Author


Premium Member

A Portfolio Manager with over 15 years experience. Currently looking for a job (please email me if you think I could help your organisation). When not ferrying the kids around or in the veg patch I love analysing shares and taking positions on both the long and the short side. I look for value situations, especially net-nets and undervalued compounders. I believe good / bad management has a massive impact on the outcomes for shareholders. I would not rather do any other job. Email me if you have any interesting ideas that fit into my criteria. more »


There are currently no comments on this post

Be the first to comment by using the form above.

© Stockopedia 2019, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.
Charlemagne Capital AUM ($m) 

end 31 Dec