Gabelli launches in London as it celebrates a successful fundraising


#1

Although virtually unknown in the UK, but with a record of long term outperformance in their native USA, Gabelli has succeeded in breaking through the
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#2

I couldn’t get this on Alliance Trust savings or on Hargreaves so I wonder if it was just sold to the big institutions.

I think they missed a trick there if they did because I was interested in it and I’m sure a lot of other people would have been too who couldn’t invest.


#3

Most likely it was sold to institutions which is a shame because they have a good story to tell and it’s the type of esoteric investment trust that could appeal to smaller investors like us.

I will most likely buy in the market after it’s had a few days to settle. It’s on a slight premium right now according to Trustnet.

 


#4

There was an offer for subscription along with a placing, and the minimum subscription was for just £1000. So it was open to retail investors. Where there might have been a problem is with wanting to make a purchase through a platform’s nominee account if the platform provider was unable (i.e. couldn’t be bothered) to facilitate the transaction.

What could be done in these circumstances, and if the holding was to be held in a dealing account rather than an S&S ISA account, is that the investor could apply directly by filling in the Offer for Subscription application form and then transfer the holding into the platform once the share certificate had been received.

 

A trick was definitely missed because the target was to raise £250m, but the IPO managed only £100m. My guess - and that is all that it is - is that if the trust does OK over the next 12 months and trades at a premium then the company will seek to increase its size through a further placing or Offer. So there might be another opportunity to come - if there is a persistent premium and people object to buying in at one. The counter to this being that another offer might not be forthcoming and the price later on is higher than it is now. You pays yer money…!

@LettsDoIt, @JKStowe


#5

I think it was an issue with the platforms too. Gabelli aren’t know at all in the UK but I think like @arkwelder says they’ll come back for more.

One other thought, when you take in to account the difficulty other new investment trust launches have had in the last few years, and then these unknown guys come along and raise £100 million, they’ve done ruddy well.

Maybe a sign too that there is something to buy in to here. If you search on Youtube for Gabelli you find many videos of the founder appearing on CNBC, Bloomberg etc talking about stocks. He certainly has a following and name recognition among USA based investors. I talked to NY based colleagues at my firm and they only have positive things to say about Gabelli.


#6

I read about this on here a few weeks ago but I never received anything from my platforms on it. I use Charles Stanley, Standard Life and Funds Network, didn’t hear a peep from any of them.

As it’s a value investing style it can take a few years to work so they may not find it easy to raise new money if it’s on a discount. Shame, because I like what I’ve read about it.


#7

I’d prefer to wait a while and see how it performs before buying it, I’d like to see what it starts buying.

There are things about it that appeals like the longevity of management and oh yeah, that performance since 1977. I looks a bit like a cross between a private equity fund and normal equity fund.

It’s on my watchlist.


#8

Still trading at a premium on FE Trustnet. Morningstar haven’t added it right to their systems, when you search for Gabelli it lists the trust but the clickable link goes nowhere.

I’d like to buy in to this but not a premium.


#9

I spoke to my broker and they said this launch was rushed through so fast they didn’t have enough time to set it up on their system. Perhaps that is why it is on a premium R2D2 because there are still a lot of people trying to buy it.