| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 15.30 | 3048 |
| Intrinsic value (DCF) | 797.45 | 163984 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 1.00 | 106 |
Fair Oaks Income Limited (FAIR.L) is a specialized feeder fund managed by Fair Oaks Capital Limited, focusing on income-generating investments. Incorporated in the Channel Islands and listed on the London Stock Exchange, the fund channels its entire capital into FOIF II LP and FOMC III LP, targeting stable returns through structured credit and asset-backed securities. Operating in the Financial Services sector under Asset Management - Income, Fair Oaks Income Limited caters to investors seeking diversified exposure to high-yield debt instruments. With a market capitalization of approximately $221 million, the fund emphasizes liquidity, risk-adjusted returns, and consistent dividend payouts, making it a niche player in the income-focused investment space. Its US-based management and offshore structure provide a unique blend of regulatory flexibility and access to global credit markets.
Fair Oaks Income Limited presents a compelling case for income-focused investors, given its consistent dividend yield (currently $0.08 per share) and strong net income of $33.7 million in the latest fiscal period. The fund’s zero-debt structure and robust operating cash flow ($37.3 million) underscore financial stability. However, its low beta (0.028) suggests minimal correlation with broader equity markets, which may limit upside during bull markets while providing downside protection. The fund’s niche focus on structured credit through feeder vehicles (FOIF II LP and FOMC III LP) introduces concentration risks, and its offshore domicile may complicate tax considerations for some investors. The absence of capital expenditures and high cash reserves ($18.5 million) indicate conservative management, but reliance on Fair Oaks Capital’s expertise is a key dependency.
Fair Oaks Income Limited competes in the crowded income fund space by leveraging its specialized focus on structured credit and feeder fund model, which reduces operational overhead. Its competitive edge lies in Fair Oaks Capital’s expertise in high-yield debt and asset-backed securities, allowing for targeted exposure to non-traditional income streams. The fund’s offshore structure provides tax efficiencies and flexibility in asset allocation, though this may deter some institutional investors preferring onshore vehicles. Compared to peers, FAIR.L’s zero-debt balance sheet and high cash position (8.4% of market cap) signal lower financial risk, but its small scale ($221M market cap) limits economies of scale in fee negotiations and diversification. The fund’s performance is tightly linked to the manager’s ability to source undervalued credit opportunities, a competitive moat that depends on Fair Oaks Capital’s proprietary networks and analytical capabilities. Unlike broader fixed-income ETFs or mutual funds, FAIR.L offers no direct liquidity, trading as a closed-end fund, which may deter short-term investors.