Peters MacGregor Investments Ltd.

[Leai_Se_Tupe]

Hello All,

Peters MacGregor Investments Ltd are currently offering 100 million ordinary shares with one option per share attached.
I'd be interested to hear from you about how you go about making your decisions as to whether to invest in an offer such as this or not.
I'm not necessarily interested in taking up the offer, but I am interested in learning about what factors should be taken into consideration when making up your mind.
Is anyone currently looking at this investment?

Cheers

[Lawnmower]

This isn't a traditional company with bizz earnings, forecasts, etc, but merely a managed fund type investment. Structured as a company, but I would consider it no different from a unit trust.
The manager seems to have had good historical returns, can't comment much more until the copy of investment statement I asked for arrives in my letterbox. (Think AUD denominated)

[Lawnmower]

Boutique manager swaps benchmark for Buffett's way
By Rebecca Urban
February 21, 2004

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The unorthodox, yet successful, investing style of Wall Street legend Warren Buffett has inspired an Australian boutique fund manager to go public with its latest project.

Peters MacGregor Capital Management intends to raise up to $100 million to list its spin-off investment company, Peters MacGregor Investments, on the Australian Stock Exchange.

Until now the fund manager's clients needed a minimum of $2 million to invest. However, after the introduction of tax concessions on capital gains for shareholders of listed investment companies, company director and chief investment officer Wayne Peters decided to open the portfolio to smaller investors.

With a philosophy similar to that of Berkshire Hathaway chairman Warren Buffet, Mr Peters takes a long-term approach to investing, focusing on a small number of businesses.

"We invest in companies with stable histories and very stable futures, so industries that experience rapid change, like the telcos, dotcoms or biotechs, we'd never invest in those," he said.

"We will only own companies that we would be prepared to own outright ourselves and that we'd be prepared to own for a minimum of 10 years."


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The company has $67 million invested already, with a portfolio concentrating on six US-based stocks. It has reported an average compound return of 32 per cent over the past four years.

The portfolio typically holds 20 or fewer stocks in the retail, banking, insurance and financial services sectors.

Peters MacGregor Investments will be one of the few Australian listed investment companies that buy stocks here and overseas. It is aiming for a minimum 12 per cent annual compound return over at least five years.

While the company hopes the listed vehicle will attract a range of investors, Lonsdale Securities manager of research Grant Kennaway said prospective investors should be mindful that this manager focused on long-term returns. "With Peters MacGregor . . . you're going to get returns that are significantly different to the benchmarks," he said. "It could be significantly higher, but there may be periods when you're lower as well.

"So there's no use watching the news at night and seeing what the Dow Jones did, because it's not going to be reflective."

The company is offering between 20 million and 100 million shares at $1 each. The offer, which is not underwritten, closes on March 26.

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Good article in saturdays Brisbane Courier Mail On thenew Floats of Listed Investment Companies and their collosal fees. Not the low fees of the originals like Australian Foundation Investments. In some cases the fees of these LIC's are more than twice that of comparable Unit Trusts. Don't know if you can get this on line have the hard copy.

[Lawso]

Got an IS from a broker. Binned it.

[Noddy]

Given that the company will be subject to capital gains tax on realised investments I don't see how this issue is of any great attraction for NZ investors.

[MeNoBatty]

It is being promoted in the latest Direct Broking newsletter. Given their record, i dont hold much hope for it.

[method]

wayne peters in a director of MHI, he is also highly educated specialising in the retail sector. His analysists are from NZ and has provided stagering returns.

i am picking up some shares in his coy. mainly to capitalise on his teams success.

[Nimble]

Interesting to see a value manager 2 1/2 months after listing on the ASX (at the 30th June) with 94% still sitting in cash and invested in just one share! "The manager is convinced investors in aggregate have yet to experience the complete fallout from this binge (late 90's large cap, high tech and telco bull market)".

6 1/2 months after listing (at 29/10/04 AGM) still holding 90% in cash and now has made 2 investments!

Manager is Buffett style value investor, struggling to find anything of value in Australia and US markets. At the same time lots of growth stocks in Australia atleast seem to be doing well!

Interested to hear if others think value managers currently underperforming in comparison to growth managers?

[rmbbrave]

If you like the companies they invest in you could buy them yourself and cut out the middleman ie Peters MacGregor Investments.

[Tim]

What are these to investments

[Nimble]

The 2 stocks they currently hold are;

Fairfax Financial Holdings Limited a Toronto based Property and Casualty Insurance Holding company. Mkt Cap US$1.8 Billion

Pier 1 Imports Inc a speciality retailer. Mkt Cap US$1.5 Billion

[Mick100]

That's my old mate ducan Macgregor is it?
Finnally setting up his own fund is he
I always thought that he would one day become a financial advisor or fund manager.

Might enjoy it's fair share of good luck but eventually the sheep will get fleeced.

Mick