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This fintech fund is now in deep value territory

Simon Thompson: It trades on a 40 per cent discount despite having three investments and cash worth more than its market cap
This fintech fund is now in deep value territoryPublished on November 26, 2024
  • Net asset value (NAV) per share dips 2 per cent to 167.4p
  • NAV (after performance fees) of £275.6mn
  • Debt-free and £34.8mn cash available
  • 40 per cent share price discount to NAV

Augmentum Fintech (AUGM:101p), the first publicly listed fintech fund, reported a 2 per cent reversal in NAV per share to 167.4p in the six months to 30 September 2024, but shareholders should not be alarmed. It was caused by a near-50 per cent (£17.8mn) write-down on the fund’s holding in Berlin-based Grover, a leading consumer-technology subscription platform. The company is undertaking a strategic review under a new chief executive, and has raised €50mn (£41.5mn) to which Augmentum contributed £1.5mn. Grover accounts for 7.1 per cent of the fund’s NAV.

The fact that Augmentum’s NAV only dipped slightly reflects the operational performance of other companies in its 26-strong portfolio. The fund’s top 10 holdings, representing 80 per cent of NAV, have reported 52 per cent revenue growth in the past 12 months, and four are now profitable.

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