Linkfest:December 04, 2012

Some stuff that I am reading today morning:

Why central banks are not taking their own advice on gold (Firstpost)

Parsi money key to vulture survival (NYTimes)

L&T plans Rs 5K Crore housing project in Powai (BS)

Fresh fault lines visible in Ayodhya (Mint)

Sahara group looking for sahara (Gaurav)

Top business books 2012 (MyInvestingNotebook)

Embedded leverage and returns (Falkenblog)

Dont count out John Paulson just yet (Dealbreaker)

Warren Buffett’s way (NewYorker)

Olam’s capital raise U-turn (FTAlphaville)

Is Haryana Capfin a value trap?

As discussed in an earlier post, Haryana Capfin is one of the holdings of Tactica Capital run by well known investor Prof Sanjay Bakshi.

What is interesting about this company is that it is basically a shell company with hardly any business of its own or any employees to speak of.The entire salary of its management is less than the summer stipend of an IIM-A grad (only 4 Lakhs for the whole year !!)

The DP Jindal group uses this shell company to park 28.52 L shares of Maharashtra Seamless…a value of roughly 85.56 Crores (considering today’s CMP of 300 Rs for Maharashtra Seamless)

Now the enterprise value of Haryana Capfin is 16.64 Crores (considering today’s CMP of 32.05 Rs).

So you are getting a dollar for pennies !!

But before we call the broker and load the truck with Haryana Capfin, let us consider what another market expert Tulsian said about this company

Tulsian told CNBC-TV18, “The market cap of Haryana Capfin is Rs 22 crore, the value of the shares which they are holding is Rs 80 crore that means the shares are ruling just at 27% of the market cap because they are holding 26.87 lakh shares of Maharashtra Seamless. This is a tiny company holding one class of share but the highest potential of appreciation or the undervaluation exists in this stock because you are getting the shares at net asset value (NAV) of about 27%.”


This statement was made on 5th June , 2009 when Haryana Capfin was around Rs.44

So the stock has gone nowhere fast in the last 3 and half years.

The same story was prevalent then too.So why didn’t the market resolve this anomaly?

Well, maybe its because there is no catalyst on the horizon.One possible catalyst could be this company getting a banking license.But then lets not hold our breath on this.

Tulsian,Bakshi- You guys got value trapped !!!!

How Jeff Gundlach helped the police


Hands-off, though, isn’t normally the first description that comes to mind when discussing Gundlach. In mid-September, thieves robbed the money manager’s Santa Monica home in a quiet residential neighborhood, taking more than $10 million in artworks as well as his red 2010 Porsche Carrera 4S, wine and watches. The robbers also snatched two works by Gundlach’s late grandmother, Helen Fuchs, who was an amateur painter.

The money manager first offered $200,000 for tips leading to the recovery of his art and days later boosted the reward to $1.7 million. Santa Monica Police Department Sergeant Richard Lewis says the large sum of money was key to cracking the case, which the Federal Bureau of Investigation assisted on.

In late September, two suspects were arrested and all of the stolen art was recovered.

The cerebral Gundlach also gave investigators a tip for solving the crime. He says that while he was at home in his family room, it dawned on him that thieves would do a Google search using his grandmother’s name to find out more about the paintings and how much they might be worth.

Gundlach told the authorities that they should check the Internet to see who might have googled the name Helen Fuchs. He says exactly two such searches were executed: one by him and one by the thieves.

Gundlach says his Internet idea impressed investigators.

“The FBI,” he says, “thought it was brilliant.”

from Bloomberg

Portfolio of Prof. Sanjay Bakshi

This post is in continuation of my coat tailing series (see here)

Please note that the portfolios mentioned in the coat tailing series are not exhaustive or complete as stock exchanges list only those entities having more than 1% of the equity.

Sanjay Bakshi is a well known investor who blogs at FundooProfessor (see the sitereview here)

He is the CEO of Tactica Capital Management Pvt. Ltd. which is a proprietary deep value investing boutique.

I have not come across any significant holdings in Sanjay Bakshi’s name.But Tactica has a significant holding.

The portfolio of Tactica (as from stock exchanges websites) is given below:

Company Name No of shares %
Haryana Capfin 121990 2.34

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