UK share tips: B.P. Marsh & Partners PLC (revisited)

It's time to return to my investment in B.P. Marsh & Partners PLC (BPM). I wrote about this investment on 20/04/18. As a quick reminder the investment thesis was to take advantage of a discrepancy in the price of BPM valuing the company at £73million versus the net asset value being £79million. Given that BPM is a well run private equity company this was a nice little arbitrage opportunity that was too good to miss.

Investment conclusion

I'm very happy to report that as of today (30/05/2018) the BPM share price is 272 pence representing just 1 pence off my 273 pence target price. As such, it's time to end my arbitrage play. After fees the net investment return was 7%. Given that this was earned in a little over a month this works out at an effective inherent rate of return of 82.3%.

In conclusion, this appears to have been a successful investment. I intend to keep BPM on my watchlist for future price to net asset value disparities.