BENJAMIN HORNIGOLD LIMITED — Net Asset Value 2024

Jul 11, 2024

Benjamin Hornigold Ltd ACN 614 854 045

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ASX Announcement (ASX: BHD)

12 July 2024

NET TANGIBLE ASSETS

Gross portfolio return for this month was negative 1.89%

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:

30 June 2024 cents NTA before tax* 28.31

* the NTA excludes 11 cents per share of estimated unrecognised deferred tax assets (comprised of prior years’ and current year’s tax losses at 25%).

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 Level 10, 171 Clarence Street, Sydney, NSW 2000 Postal Address: PO Box 760, Manly, NSW 1655 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 Ltd (JBL) and JB Financial Group Pty Ltd 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.

The announcement on the 11[th] September provides details on proceedings in recovering these debts. The Court timetable can be viewed here.

Following on from last month where the Court had ordered the defences of JBL and JB Markets Pty Ltd (JBM) to be removed from the court file. JBM has since applied for its director to represent the company in court. We have yet to hear whether JBL has appointed lawyers.

Benjamin Hornigold Ltd ABN 62 614 854 045 Level 10, 171 Clarence Street, Sydney, NSW 2000 Postal Address: PO Box 760, Manly, NSW 1655 Tel: 02 8117 8123

Significant Holdings

	Allocation (%) Holding Strategy/ Rationale Investment Summary
	19.23% Cordish Dixon Funds I, II, III Deep Value/ Discount Capture Maturing Private Equity funds managed by the experienced and well respected Cordish Family Office. We have accumulated a position at large discounts to NTA. These funds are now maturing and distributing proceeds.
	6.42% Unibail Rodamco Westfield Deep Value A continued hangover from the pandemic has allowed us to invest in high quality shopping malls at significant discounts to the underlying asset values.
	4.11% BetaShares Australian Strong Bear ETF Hedging Geared exposure to an inverse ASX 200 index. As valuations have increased, we have moved to hedge some of our exposure to market movements
	3.92% Elanor Investors Group Deep Value Property funds management and commercial property exposure.
	3.60% Navigator Global Ltd Deep Value NGI holds strategic investments in diversified alternative asset managers.
	2.74% Humm Group Deep Value Profitable non-bank lender trading below book value.
	2.24% IperionX Event Driven Thematic Market Exposure Titanium extraction, processing, and recycling, benefiting from US Inflation Reduction Act to re-shore the material supply chain.

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 Level 10, 171 Clarence Street, Sydney, NSW 2000 Postal Address: PO Box 760, Manly, NSW 1655 Tel: 02 8117 8123