Figures released on investment fund Lebanon Holdings show that the fund’s net asset value per share (NAV) reached $7.76 as at August 31, 2000 compared to $7.70 on May 31st and $7.94 at year-end 1999.
The information memorandum issued by the fund’s manager Blakeney Management Ltd. noted that most publicly traded stocks have remained static and liquidity dried up ahead of the parliamentary elections.
The fund increased its holdings in BLOM, bringing them close to 20 percent of the portfolio, which is the maximum allowable under its investment guidelines. It said BLOM has shown healthy profit growth despite the poor economic climate and its stock is significantly undervalued.
As for the unlisted shares, First National Bank’s deposit base has increased substantially and the bank has been generating profits, while Société Nationale d’Assurance has been performing well with profit growth fueled by targeting the more lucrative life insurance segment. The memo indicated that the fund has completed the 10 percent share buyback that was started earlier in the year. The board will also look to repurchase an additional 10 percent of the stock in an effort to further reduce the discount to NAV at which the shares are currently trading. — (Lebanon Invest)