13th October, 2023
The Insider: Meet the Fund Manager sessions are a great way to hear directly from leading fund managers. They share their approach to investing, favourite companies and their market view for the year ahead.
Exor is a company that perfectly characterises Andrew Brown’s counter-cyclical investment strategy that focuses on taking positions in family controlled companies. The group can trace its roots back to the end of the 19th century when the group now commonly known as FIAT was founded as Fabbrica Italiana Automobili Torino by Giovanni Agnelli.
The group was put together in March 2009 in a consolidation of Agnelli family companies that proved to be a lucrative move over the past decade and a half.
In an extraordinary demonstration of exceptional capital management, FIAT was valued at €1.34 billion 1st of March 2009, a figure that had soared to a whopping €25.551 billion by the 20th of September 2023. Taking into account dividends of €4.843 billion, the total value of €28.9 billion implies an annual pre-tax IRR of 23.8% over this time period.
Most of this value can be attributed to a series of transactions that saw Fiat become five companies, and is what Andrew considers to be a high degree of fiscal responsibility that proves the company is strategically driven when engaging in acquisitions and disposals of businesses.
CNH Industrial was spun out on 3rd of January 2011, followed by the famously successful Ferrari IPO on 20th of October 2015, Stellantis on 18th of January 2021. Faurecia on 28th of April 2021 and Iveco on 2rd of Jan 2022.
The decision to spin out Ferrari resulted in enormous value creation for all existing shareholders and investors in the IPO, with the luxury super car manufacturer’s share price rising over 700% since listing.
Exor recently released their financial performance results for the first half of 2023, where they revealed that their net asset value had increased by 22.8% during the period to reach €34.2 billion that was combined with a net profit of €2.157 billion.
The company also announced a €1 billion buyback, €750 million of which was offered as tender at a 10% premium. During the first half, Exor was also seen acquiring a 15% stake in Philips for US$2.8 billion.
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Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets’ position. Any advice contained within this presentation is general advice and does not consider your personal circumstances, you should consider whether it is appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.
Past performance is not a reliable indicator of future performance.
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*Past performance is not a reliable indicator of future performance.
The CEOs of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.
Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.