BENJAMIN HORNIGOLD LIMITED — Net Asset Value 2021

Jun 10, 2021

Benjamin Hornigold Ltd ACN 614 854 045

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ASX Announcement (ASX: BHD)

11 June 2021

NET TANGIBLE ASSETS

Gross portfolio return for this month was 1.28%

Net Tangible Assets

Benjamin Hornigold Limited (Company or BHD) advised that the company’s monthly unaudited Net Tangible Asset (NTA) per share in cents is:

	31	May 2021
		cents
NTA before tax*		34.61

* the NTA excludes 10 cents per share of estimated unrecognised deferred tax assets (comprised of prior years’ and current year’s tax losses).

ENDS

Michael Glennon

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Chairman / Company Secretary Benjamin Hornigold Ltd

Tel: 02 8117 8123

Email: cosec@bhdlimited.com.au

Benjamin Hornigold Ltd ABN 62 614 854 045 Suite 1, Level 17/25 Bligh St, Sydney, NSW 2000 Postal Address: PO Box R281, Royal Exchange, NSW 1225 Tel: 02 8117 8123

INVESTMENT STRATEGY

It is our intention to continue to maintain a wide mandate and we remain of the view that the ongoing volatility requires our investment focus to be flexible. To date, we have been gradual in allocating funds to investments to ensure capital preservation. The primary strategies we have targeted are;

• Discount Capture – The Company aims to take advantage of large discounts to NTA among Listed Investment Companies.

• Arbitrage – Typically companies in the later stages of a takeover providing shorter term trade opportunities to benefit from lower risk arbitrage trades. Depending on our view of the stock, we may look to short stocks* in order to hedge out risk or retain the underlying market exposure.

• Deep Value Investments – Overlooked and out of favour investments where we expect an eventual re-rating of the share price.

• Event Driven – Our preference has been to take a position with an expected Event leading to an increase in the share price

Our expectation in the current climate is to continue to focus on these strategies. The Company’s investment style is best described as Opportunistic with the aim of providing an absolute return.

Ongoing Litigation

The loans to John Bridgeman and JB Financial Group remain outstanding. Although both companies ability to repay these loans looks questionable, a recovery for BHD would provide a significant uplift to shareholders. As a result, we have continued to pursue the outstanding debts.

Benjamin Hornigold Ltd ABN 62 614 854 045 Suite 1, Level 17/25 Bligh St, Sydney, NSW 2000 Postal Address: PO Box R281, Royal Exchange, NSW 1225 Tel: 02 8117 8123

Significant Holdings

	Allocation (%) Holding Strategy/ Rationale Investment Summary
	14.17% Ellerston Global Mid Small Fund Event Driven/ Discount Capture Initial investment via ASX listed LIC (EGI.ASX) in the weeks running up to delisting. Investors remaining in the unlisted fund benefit from no management fee (2 years) and the distribution of retained franking credits
	6.38% Vitalharvest Takeover/ Arbitrage Shorter term trade to benefit from low beta market exposure with a premium offered under a Takeover
	3.11% Bingo Industries Takeover/ Arbitrage Shorter term trade to benefit from low beta market exposure with a premium offered under a Takeover
	5.13% Undisclosed LIC Event Driven/ Discount Capture Hedge Fund Investment Company trading at a discount to NTA anticipated to move to an alternative structure allowing investors to exit close to NTA.
	6.36% Undisclosed Commodities Fund Market Exposure Small/Mid Cap commodities exposure
	3.97% Unibail- Rodamco- Westfield Event Driven/Deep Value Investor sentiment was at all time lows following on from pandemic induced lockdowns globally and provided an opportunity to invest in high quality shopping malls at significant discounts to the underlying asset values.

We have highlighted some of our larger investments to provide investors with some insight into the current drivers of performance. Investors should note that there may be other large holdings that remain undisclosed

Benjamin Hornigold Ltd ABN 62 614 854 045 Suite 1, Level 17/25 Bligh St, Sydney, NSW 2000 Postal Address: PO Box R281, Royal Exchange, NSW 1225 Tel: 02 8117 8123