«Investors in search of flipping returns are increasingly willing to move to secondary and tertiary
housing markets and neighborhoods with older, smaller properties that are available
at a
deeper discount.
[NB: i) Church
House's Argo stake is held by the
Deep Value Investments Fund, managed by Jeroen Bos — if you haven't read it already, I can highly recommend his recent book «
Deep Value Investing», ii) XXX Capital Management is a well - known European hedge fund, which hasn't publicly disclosed a holding in Argo to date, hence the redaction — Argo management are obviously aware of their shareholding & support, and iii) the letter was based on a GBP 14p share price & a higher GBP / USD rate —
at the current 13.875 p price and exchange rate, Argo now trades
at a 36 %
discount to net cash and investments, and a 47 %
discount to net tangible assets.]