Hygrovest Ltd (ASX:HGV, OTC:MMJJF) looks well placed as it starts the year with its larger private holdings performing in line with expectations while opportunities exist in the listed space.
The company’s investment manager is HD Capital Partners, a value-oriented, fundamental bottom-up stock picker focusing on opportunities in listed small cap equities markets.
HD is also the largest shareholder in Hygrovest, ensuring an alignment of incentives and a shared outcome.
Sentiment towards smaller companies lifted in November and December and, if sustained, would support HD Capital’s core strategy of focusing on these companies.
Importantly, Hygrovest retains sufficient cash to move quickly as new opportunities arise.
Hygrovest’s investment portfolio.
HD Capital’s focus in 2024 will continue to be on closing the large discount to NTA (net tangible assets) that Hygrovest shares currently trade at, while maximising the risk-adjusted returns of the Hygrovest portfolio.
When the discount closes, HD Capital will be in a better position to consider strategic options.
Read: Hygrovest reveals strong quarterly results for Canadian-listed investment