| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 130.10 | -53 |
| Intrinsic value (DCF) | 93.08 | -66 |
| Graham-Dodd Method | 3.79 | -99 |
| Graham Formula | n/a |
Hansa Investment Company Limited (LSE: HANA.L) is a UK-based closed-ended equity fund of funds managed by Phoenix Fund Services (UK) Limited and co-managed by Hansa Capital Partners LLP. Established in 1912, the company primarily invests in global public equity markets, focusing on value stocks, special situations, and small-cap companies. Its diversified portfolio spans multiple sectors, with performance benchmarks including the FTSE All Share Index and MSCI All Country World & Frontier Markets Index. Hansa Investment Company operates as a fund of funds, leveraging third-party funds to enhance returns. With a market capitalization of approximately £268.7 million, the company appeals to investors seeking exposure to global equities through a value-oriented, small-cap bias strategy. Its long-standing presence and focus on niche investment opportunities position it uniquely in the asset management sector.
Hansa Investment Company offers a distinctive value-oriented, small-cap-focused investment strategy, appealing to investors seeking diversified global equity exposure. The fund's low beta (0.346) suggests lower volatility relative to the broader market, which may attract risk-averse investors. However, its negative operating cash flow (-£5.3 million) raises concerns about short-term liquidity, despite a solid net income of £91.4 million. The dividend yield, based on a £3.2 per share payout, could be attractive, but investors should weigh this against the fund's reliance on third-party funds and its niche focus, which may limit scalability. The absence of debt is a positive, but the fund's performance is highly dependent on the success of its underlying investments and market conditions for small-cap and value stocks.
Hansa Investment Company differentiates itself through its long history (founded in 1912) and specialized focus on value stocks and small-cap investments, often in special situations. This niche strategy allows it to capitalize on undervalued opportunities that larger, more diversified funds might overlook. However, its fund-of-funds structure introduces an additional layer of fees and reliance on third-party managers, which could erode returns compared to direct investment vehicles. The company's benchmarks (FTSE All Share and MSCI ACWI & Frontier Markets) suggest a hybrid approach blending UK and global exposure, but this may lack the clarity of pure regional or thematic funds. Its competitive edge lies in its experienced management team and ability to identify overlooked value opportunities, but its small size (£268.7 million market cap) limits economies of scale compared to larger asset managers. The lack of debt is a strength, but the negative operating cash flow indicates potential liquidity constraints, which could hinder flexibility in volatile markets.