ASX:PNI
Pinnacle Investment Management Group Ltd
Investment Summary
The fund managers believe that Pinnacle Investment Management Group Ltd is demonstrating strong growth potential, having risen 16.4% in November and maintaining a robust performance throughout the year with only one negative month. They note the benefits from favorable global equity and credit markets, alongside an expansion of its multiaffiliate strategy into Europe and the US. In their opinion, the recent $400m capital raise will enhance Pinnacle's capabilities by enabling acquisitions and supporting new affiliate strategies. While acknowledging that the stock may appear expensive on forward looking P/E measures, they argue that the growth opportunities are more promising than ever, suggesting substantial potential for replicating domestic success overseas.
Commentary From The Managers
Blackwattle Investment Partners
30 Nov 2024
$23.57
- Pinnacle Investment Management rose 16.4% in November, continuing its strong performance for the year.
- The stock has only had one negative month in the last 12 months (-2.6% in April).
- Pinnacle has benefitted from strong global equity and credit markets.
- The company is expanding its multiaffiliate strategy into Europe and the US.
- In November, Pinnacle undertook a $400m cap raise (+$25m SPP) to acquire new affiliate stakes.
- These funds will also seed affiliate strategies and provide ‘dry powder’ for future acquisitions.
- While the stock appears expensive on forward looking P/E measures, the growth opportunity has never been better.
- The potential prize for replicating domestic success offshore is substantial.
- Blackwattle Investment Partners continues to hold because of these compelling growth prospects.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.