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Mobeus 2 VCT - Evidence of revised risk profile

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
james188
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Mobeus 2 VCT - Evidence of revised risk profile

#165720

Postby james188 » September 11th, 2018, 6:35 pm

Mobeus 2 published an Interim Management system today via an RNS. One thing that caught my eye was the disposal of a very recently acquired (March 2018) investment in Hemmels - a company that commenced trading in September 2016 and specialised in the high value classic cars market.

Mobeus 2 bailed out last week at a loss of £0.24 million (more if you add on the acquisition costs, no doubt). It has been very rare for Mobeus companies to take any losses on investments and so this one stands out. This one is not massive in terms of the total asset base, but it indicates that something went very wrong in the due diligence process. The whole point of the Mobeus investment (through all four funds, so the other three will doubtless report losses) was to enable Hemmels to expand, so it is very surprising that Mobeus bailed out so quickly. I think that a more detailed explanation of what happened is required in due course.

Gostevie
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Re: Mobeus 2 VCT - Evidence of revised risk profile

#165751

Postby Gostevie » September 11th, 2018, 9:21 pm

Good spot James.

As the RNS says, it is "immaterial to the Net Asset Value per share" but it would be interesting to know what went on there. If an explanation isn't offered in the meantime, it is something we can ask at the seminar in February.

Gostevie


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