Samara Asset Group plc
26.07.2023 - Equity Research Report (english) // kaufen
Samara Asset Group is actively ramping up its investments in the fund-of-fund approach. Samara Alpha Management launches flagship fund, promising attractive risk-adjusted returns.
Unternehmen: Samara Asset Group plcISIN: MT0001770107
Branche: Finance-Investments
Rating: kaufen
Kurs bei Erstellung in €: 2,18
Kursziel in €: 4,14
Mögl. Interessenskonflikt gem. §34b Abs.1 WpHG und FinAnv: 5a;5b;6a;7;11
In June 2023, Samara Asset Group (formerly: Cryptology Asset Group) sold its entire stake in Block.one, a crypto company, for $118.9 million, resulting in a profit of about $52 million. Following this, they distributed dividends of €1.30 per share, a total payout of around €74 million. Despite Block.one selling a significant portion of its Bitcoin holdings, leading to a slight discount on the liquid asset value, Samara’s new strategy sees the allocation of $50 million for fund-to-fund investments over the next year and a half. This aligns with their objective to become a reliable institutional-grade investor. Samara, leveraging the successful launch of Samara Alpha platform, aims for an annual expected return of 25% to 35% with its market-neutral fund-of-fund strategy. The strategy will exploit inefficiencies in traditional capital markets, especially in the crypto landscape, to generate alpha and high returns, while reducing exposure to underlying assets and volatility. Retail investors’ limited access to such opportunities has led Samara to hold onto its investments, except for small illiquid ones.
Samara Alpha operates as an independent subsidiary of Samara Asset Group, managing its funds independently with external members and limited partners. Shareholders also participate in Samara Alpha’s potential success. While the subsidiary’s valuation is currently based on cost basis, strategic investors are being sought to increase its value. A potential share capital increase could involve strategic investors who would invest alongside Samara Asset Group.
Samara Asset Group has invested $10 million in the flagship market-neutral multi-strategy fund launched by its subsidiary, Samara Alpha Management. This US-based asset management subsidiary specializes in leveraging market inefficiencies in the budding digital asset space, with a goal to yield appealing risk-adjusted returns. Led by Chief Investment Officer Adil Abdulali, the firm operates with a diversified digital asset managers portfolio.
We have estimated the total valuation of investments for Samara Asset Group to be €227.15 million. Factoring in an increased net debt and holding costs of €-17.28 million (an increase from the previous €-15.22 million), we have estimated a comprehensive Net Asset Value (NAV) for the company, which now stands at €209.87 million. This translates to €4.14 per share. With the current share price standing at €2.18 (Xetra on 25th July 2023 at 10:02am), there is considerable upside potential. Consequently, we maintain a ‘Buy’ rating.
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