1:59 pm, February 25, 2021
Institutional investor Blackrock has increased its shareholding in listed dealer group Vertu Motors to more than five per cent.
In a disclosure to the Stock Market this morning, the high performing dealer group made the ‘notification of major holding’ which shows Blackrock Inc now holds 5.43 per cent of Vertu’s shares.
Blackrock joins a number of other well-known investment funds who have seen the listed dealer group’s share price and judged it good value.
Vertu shares were trading at 39p this morning, up from 31p at the end of January.
‘I take plenty of encouragement from the recent evolution of Vertu’s shareholder register, which always included a high level of institutional support including from well-known value-biased funds such as Tweedy Browne in the US and Burgundy Asset Management in Canada, along with various funds here in the UK,’ said one Vertu shareholder who works in the city.
‘However, beyond this and through the pandemic, it’s been great to see further new names taking advantage of share price weakness and coming onto the register – notably Richard Teatum of Stoneacre who must surely know his onions.
‘Seeing BlackRock’s disclosable interest rise above five per cent only instils further confidence in what I feel is a great story trading at a discount to its tangible book value.’
Blackrock, based in New York, is the world’s largest asset manager with $8.67 trillion in assets under management as of the start of this year.
Mike Jones, compiler of the Car Dealer Top 100 list of most profitable dealers in the UK and executive chairman of ASE Global, added: ‘It’s great to see them increase their stake in Vertu.
‘Listed UK motor retailers have been undervalued and this sign of confidence is to be welcomed.’
Bruce Beaton, a serial automotive investor and Vertu shareholder, added: ‘As the economy opens up and the market can see the resilience of profit streams they can reflect on the core asset strength of proper companies.
‘Current discount to balance sheet value is a major attraction. It’s like buying £10 notes for £7 – If I had more £10 notes I would buy Vertu.’
