B.E. Capital Management is pleased to share a recent piece of research on Belmond Ltd. This company has been a value trap for many years as the right-of-first-refusal on a sale of the Hotel Cipriani owned by founded James Sherwood has acted as a defacto poison pill. Recent developments within the company have changed this.
B.E. Capital Research Report: Belmond Ltd
B.E. Capital has been a major shareholder in Fund.com, Inc for quiet some time. In 2016, Mr. Braziel was appointed receiver of Fund.com, Inc and since that time has sought to restore fraudulently transferred assets to the company.
As part of the receivership, Mr. Braziel has successfully settled litigation with AdvisorShares and recovered (and relaunched) the fund.com domain name. Today, another milestone was achieved- nearly a quarter of outstanding shares of the company have been disallowed:
This ensures that all value restored to the company, and all value created in the company going forward, is properly attributed to legitimate shareholders.
Astute investors always search for a disparity between price and value. We argue there is a direct correlation between crowds and a lack of such disparity. Crowding takes place within many contexts- even the value investing space - often tarnishing returns even for intelligent investors.
One usual place that B.E. Capital has recently been finding value has been in the bankruptcy, and now civil rehabilitation, of the hacked Bitcoin exchange Mt. Gox. Fortune magazine recently quoted Thomas Braziel, Managing Partner of B.E. Capital Management, in its article "$1 Billion Bitcoins Lost in Mt. Gox Hack to Be Returned to Victims". You can read the full article at Fortune's website here.