ANTHONY CLARK: Sabvest’s drop in share price is an overreaction

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ANTHONY CLARK: Sabvest’s drop in share price is an overreaction
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The knock from Transaction Capital is nothing more than a blip in a well-structured and strategically positioned portfolio

I worked in the early 2000s with Peter Armitage, an analyst I rate highly.

I use this parable to aptly describe the market’s current irrationality on mid-cap investment holding company Sabvest Capital. The stock has an enviable long-term track record of returns. Simplistically, Sabvest is the family wealth office of businessman Christopher Seabrooke. Private investors can therefore co-invest via JSE-listed Sabvest into the connections, intuition and deal flow of a well-regarded, seasoned investor.

Much of this, I believe, is tied to its minor 5-million shareholding in Transaction Capital. That stake, as at the 2022 financial year-end, was worth R165.5m. At the time of writing, its value was R62.6m as TCP shocked the market in mid-March with an announcement about problems at its SA Taxi division.

The fastest-growing asset is Apex Partners, whose industrial portfolio is powering ahead, with its valuation rocketing 442% since 2019

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