Norwegian fund manager Joakim Hannisdahl says something has to give in buoyant shipping markets where stock prices are lagging vessel values and earnings.
The former Cleaves Asset Management (CAM) boss said in an update on his private portfolio that there have been “some headwinds” in recent weeks, with his fund down 15% since the peak on 3 March.
“Although such a back-step can be frustrating, it is not unusual and I have used the lower pricing to increase exposure, from 39% cash at the peak…to 6% today,” he said.
Hannisdahl finds current pricing in tankers and dry bulk attractive.
Tanker companies are trading at a 16% discount to net asset value (NAV), with bulkers at 28%, he calculated.
And the current situation is unsustainable, Hannisdahl believes.
“Either asset prices and earnings estimates are revised down, or equity pricing is likely to see a positive correction,” the investor said
But with negligible fleet growth in both tankers and bulkers, and decent demand growth, he is expecting both earnings estimates and asset prices to be well supported into the second half of 2023 and beyond.
On Friday, Hannisdahl added 18.45% to his stake in bulker owner Genco Shipping & Trading at a $12.73 average price, while also adding 17.92% to his position in dry cargo rival Golden Ocean Group at a NOK 82.87 ($7.35) average.
Hannisdahl's portfolio stands up 4% so far this year and 423% since inception.
Re-launch close
He resigned from CAM in October, citing irreconcilable differences with Cleaves Securities management.
The investment bank obtained an injunction to stop him marketing his new venture, Gersemi Asset Management (GAM), to former clients until 31 December, but this was overturned.
The investor said GAM is now close to being launched.
“I believe the current backdrop is close to perfect in terms of re-launching the shipping fund. We are still on schedule and expect to distribute investor documentation shortly, with first money in towards the end of June,” Hannisdahl said.
He is planning investor meetings soon.
