Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Why VGI Partners (VGI) Shares Jumped 100%

VGI Partners Ltd (ASX:VGI) shares went up as much as 100% on their debut on the ASX, doubling the issue price of $5.50 per share.

VGI Partners Ltd (ASX: VGI) shares went up as much as 100% on their debut on the ASX, doubling the issue price of $5.50 per share.

About VGI Partners

VGI Partners is a high conviction global equity manager. VGI manages capital for high net worth individuals, family offices and consists of a team of 11 investment professionals based in Sydney, New York and Tokyo.

VGI Partners was founded in 2008 and according to its prospectus, it manages funds of more than $2.1 billion, including $1.5 billion for approximately 250 high-net-worth individuals and families.

VGI’s flagship fund, the VGI Master Fund, has returned 14% per annum net of fees. The fund was established in 2009. Another strategy they manage is the ASX listed VGI Partners Global Investments Limited (ASX: VG1).

Is It Time To Buy VGI?

According to the VGI prospectus, in the calendar year 2018 VGI made a profit of just shy of $35 million. At a share price of $10 per share, the market cap of VGI is around $670 million. That puts the shares on a Price-Earnings (P/X) of nearly 19 times. No shares were sold via the IPO, so new shares issued meant cash coming into the business, leaving VGI with no debt and $65 million in cash post the IPO.

It should be noted that in 2018 VGI earned a hefty performance fee of almost $45 million. That helped boost the revenue line. I think they will continue to earn performance fees in the future, but keep in mind that performance fees can be lumpy in nature from one year to the next.

Other ASX-listed fund managers that you may consider buying shares in include the well-known Magellan Financial Group Ltd (ASX: MFG), Platinum Asset Management Ltd (ASX: PTM) or Pendal Group Ltd (ASX: PDL).

[ls_content_block id=”14947″ para=”paragraphs”]

Disclosure: At the time of writing David owns shares in VGI Partners, VGI Global Investments and Magellan Financial.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content