PTM - Platinum Asset Management

[mark100]

Platinum FUM fown 7.5% to $18.7B in Jan. Thats down from over $22B at the time of the IPO in May 2007. At this rate PTM shares could soon have a 3 in front of them. To be fair though all of the PTM funds outperformed the market by a fair margin in Jan however none posted a positive return.

[mark100]

PTM FUM down 4.9% to $17.8B in Feb with some marginal outperformance by the PTM funds. All posted a negative return however

[mark100]

How the mightly have fallen. FUM now around $17.1b and the share price is $3.50. Glad I was a seller in the $8's and not the over-excited punter who paid $9.11 on the first day.

Consensus EPS for FY09 is now around 25c. I reckon the most you could pay for PTM in the current environment would be 11-12x FY09 which equates to $2.75-3.00.

[mark100]

PTM FUM are going down the drain. Now down to $14.97b. Thats a 32% drop in FUM since listing 12 months ago for a fund manager that apparently was positioning itself for the end of the bull market.

[mark100]

I seem to be talking to myself on this thread but I see PTM is down to $2.75 today. I don't like to see people losing money but I must say I'm personally very happy to see this fall.

At this point in time PTM's FUM is in freefall but you would have to think at some point FUM will stabilise and resume its growth. Right now that point has not been reached and as a result PTM is probably still too expensive at $2.75.

Well worth watching for the eventual turnaround.

[Huang Chung]

Hi Mark

Been quietly reading your posts.....generally not much to say other than 'Oh My God!'.

Kerr Nelson has gone from hero to zero in less than 12 months.

I was having a look at Platinum Capital at around $1.19 briefly yesterday. The massive premium to NTA that this stock attracted has now completely disappeared. I like the idea of LICs, such as PMC, as opposed to open ended managed funds, as you don't have the problem of a fund having to sell a part of their holdings at exactly the wrong time in order to meet redemptions related to unit holders cashing in their chips.

Do you have any views on PMC Mark?

[macduffy]

I seem to be talking to myself on this thread but I see PTM is down to $2.75 today. I don't like to see people losing money but I must say I'm personally very happy to see this fall.

At this point in time PTM's FUM is in freefall but you would have to think at some point FUM will stabilise and resume its growth. Right now that point has not been reached and as a result PTM is probably still too expensive at $2.75.

Well worth watching for the eventual turnaround.

FUM certainly taking a hammering. Of course, this is inevitable in a down market and we don't know how much is due to market values as opposed to redemptions/ loss of investment mandates. I read somewhere that PTM's investment returns overall, while negative in recent months, are actually better than most of its competitors.
As a listed company, PTM is probably under a lot more scrutiny than most of its peers. Has anyone seen recent FUM figures/trends for other fund managers and if so, how do they compare with PTM's FUM losses?

[mark100]

Hi Mark

Been quietly reading your posts.....generally not much to say other than 'Oh My God!'.

Kerr Nelson has gone from hero to zero in less than 12 months.

I was having a look at Platinum Capital at around $1.19 briefly yesterday. The massive premium to NTA that this stock attracted has now completely disappeared. I like the idea of LICs, such as PMC, as opposed to open ended managed funds, as you don't have the problem of a fund having to sell a part of their holdings at exactly the wrong time in order to meet redemptions related to unit holders cashing in their chips.

Do you have any views on PMC Mark?

Hi HC,

I don't really follow the LIC's as I prefer to invest directly in the stocks myself. But you're right the premium has vanished but with good reason. PMC's investment performance has been quite poor over the past few years. I actually rate WAM has a good LIC. They invest in small cap aussie stocks and have outperformed the market by a large degree over the past 7 years or so. They also cashed up a lot prior to the bear

[Huang Chung]

Cheers Mark.....I don't mind the idea of getting some overseas shares at some stage, and LICs are a convenient way of going about it.

[SEC]

Hi Mark

Been quietly reading your posts.....generally not much to say other than 'Oh My God!'.

Kerr Nelson has gone from hero to zero in less than 12 months.

I wouldn't mind being called a zero if I was able to sell down a stake of my own investment company at the peak of the market and had half a billion in the bank (or a 5 and eight zeroes!!!!!!!!).

Yes Mark I've also been following with amazement and surprised how poorly the PTM funds have performed given they were supposed to have been well hedged against any bear market.

I might come up a revised table with PE ratios for the listed fund managers just to compare with what they were a year ago...

SEC