LIC & LIT QV Equities - LIC - Small/Mid Cap (ex-ASX 20) - Australia

QV Equities Limited | Ex 20 Quality + Value Portfolio

QVE appears to have been dropping whilst the market is moving up.

Anton sold a few shares in Nov 2017: http://qvequities.com/files/171117_QVE_Appendix_3Y_Anton.pdf

Any ideas?

Ed: not sure if this is the way we want to post threads, but it keeps the LIC thread more general.

 

I did load up QVE both within my Family Trust and SMSF at prices ranging from $1.260 to $1.240. As I understood it, Anton was meant to stay until at least 2023.

I am happy to hold QVE as long as they stick to their mantra of buying industrial companies (no or low resources), recurring earnings and growing dividends. Anton has been there long enough and I hope they have a reasonable succession planning policies to ensure smooth transition. I like listening to Simon Conn just as much as Anton.

Not advice.

 

I put in the buy order today at 1.23 bit it went back up so the order was not filled.

 

From memory Anton sold some of his stake in IM to an overseas Mgr. Hence he’s probably got one hell of a tax bill and needs to sell some shares for this reason? Vesting of performance renumeration? But anyone’s guess. It’s quite common.

Downward pressure on price might be due to underformance. QVE are committed to their value focused, industrial strategy. Hence they miss out when resources are doing well. Many investors are short term focused so tend to jump from fund to fund chasing performance.

You either believe in the Mgr or not and accept these periods of underperformance. Otherwise an index product might be more suitable?

 

Got an order filled last week at $1.24, was pretty happy with that.

 

A few months ago now QVE was trading at around a 10% premium or so.

Share price got to around 1.35 and I think NTA was around 1.18.

Price has come back a bit, while the NTA has continued to steadily increase to the point where it’s very close to NTA. I think both around 1.24-1.26

I’ll probably be topping up this one later in the month!

 

I was doing some shoping today and QVE was in my list but I couldn't make up my mind and left it because need to gathwr bit more info.

 

I hold QVE and don't plan to sell but I'm interested in understanding why things happen. QVE appears to be contrary to the market at the moment. There must be a reason, whether it is fickle investor sentiment, big fund sell off, algorithmic trading programs pushing the price down to make some money or something else.

At or near NTA QVE is currently at or near the top of my shopping list, particularly with the current market valuations. It is a good complement for the big LICs because it doesn't hold the big banks and other top 20 copmanies.

 

I have been thinking about it too. It seems to have lost favour recently and has been on a downward trend. I always assume that there might be a reason and if there is, I will be probably the last to know.

It could possibly be from QVE having underperformed relative to the overall index in recent times – mainly owing to them being underweight in resource stocks? Has a prominent company or two that QVE holds taken a battering in recent times (Amcor perhaps?)? Or is it because investors are nervous about QVE’s results announcement?

My curiosity is purely academic. Like I have said in a previous post, I topped up both my SMSF and Trust at prices ranging from $1.26 to $1.24 over the last few days. Will read every market update they release and keep looking for that wording that goes something like this…recurrent earnings, capable management, strong balance sheet, industrial focused and the intention to stay the hell out of cyclical resource holdings.

Not advice.

 

It’s great to want to understand the reasons for price behaviour but sometimes there isn’t a definitive answer. IML generally have a 3 - 5 year outlook for companies in their portfolio which is considered long term relative to most funds nowadays. So is trying to understand what’s been happening in recent weeks / months really going to be of any significant value to a long term investor?

If there’s bots trading you may see lots of very small orders / trades. But as per my previous post I’m guessing there’s less interest due to recent underperformance given QVE avoid resources and more speculative stocks which I’m assuming have been performing strongly more recently.

This article from IML might provide further insight:
The Small Ords has surged 10% over the past 3 months… so what’s driving it? | Investors Mutual Limited

This story is a good one and in part why I consider IML one of the best Mgrs around. I’m a contrarian so I feel very comfortable having our money invested with a Mgr who has high conviction in their own contrarian strategy:

 

I get the vibe from their recent articles that they're getting frustrated with the benchmarks performance. They are probably getting questions from investors wondering what's going on, so perhaps they feel the need to point out some of the nonsense that's driving the small ords higher.

I'm more than happy for them to stick to their approach regardless of what the benchmark or the market as a whole is doing. If anything, it'll separate the investors who are chasing short term performance and those who have conviction in QVE's approach and are committed holders of the stock.

It's just sentiment after all. The stocks QVE holds will be providing them with increasing dividends, provided the business is performing well. So the value proposition for them and for us, just becomes better the longer the price of QVE (or it's stocks) stagnates.

Hopefully the 'underperformance' continues, and maybe we can even pick up QVE at a nice discount!

 

Did this get picked up today?

 

I put in the order at 1.21 too greedy i know. So did not fill.

I have a target to buy QVE and MIR but I am half mind about whether or not to buy now, don’t know why. Maybe I know, it feels as though some sprt pf corrections will come, don’t know when. Lots of cash sitting in saving.

 

Me too my order is 1.20 hehe.

 

I remember a while back when Milton was trading at around $4.17 and I waited and waited for it to hit $4.10. It didn't happen to me so now days I just tip the funds in. The difference between 1.23 and 1.21 over a 10k parcel is about 100 or so shares. Childs play if you are in it for the long term in my opinion. Credit goes to reading chapter 8 and 20 of the intelligent investor.

 

Agree with this. Although I'm in between tranches at the moment, I'll be happy to pick up a bargain. That being said, I might get bored waiting tomorrow and up my bid or I might take too long and miss out.

 

I picked up half of what I wanted today at $1.235 hoping for a bit of weakness top pick up the rest.

 

What is the attraction of QVE? Higher MER, lowish dividend, small fund, external manager, only been around for a few years?

 

Tilt away from Aussie large cap concentration and the potential issues associated. MIR achieves similar, however it has been at a premium for a little while now (recently pulled back some). The unlisted IML products in this space have done well over a decent period post fees so many have faith in QVE. Active strategies have done comparatively well in this space in general vs the index. QVE fees aren't "high" in the context of what they are doing.

Jumping in to QVE at a decent premium doesn't sit well with me, getting a small portion and topping up on a potential SPP sits better with me.

 

wow, QVE at 1.21 today