Wexboy’s letter to Argo

Argo Group has the questionable honor of being the worst performing stock that I bought and have blogged about: it’s down ~33% since the beginning of the year. Fellow blogger and Argo owner Wexboy decided to not stand idle at the sidelines, and send a letter to Argo to urge management to take action. If you are a shareholder you should check it out.

I don’t fully agree with all suggestions, but buying back shares when the company has 20.9p/share in cash and investments while it is trading below 10p/share is something I absolutely want to see! Better disclosure on what’s exactly inside the Argo fund is also a good suggestion since it is such a huge part of Argo’s balance sheet. I don’t think management needs to be urged to increase AUM. I’am sure that they know this, and will try to do this if they can since it’s already in their best interest to do so. The launch of a new emerging market fund earlier this month is a good sign in this direction. I also don’t really care about promotional investor relations activities. Influencing the share price of the company is in my opinion not managements job. They just need to run the company, and if they are doing a good job the market will take care of the share price.

Disclosure

Long Argo Group

2 thoughts on “Wexboy’s letter to Argo

  1. Wexboy

    Thanks, Hielko – all very well said!

    As discussed, share buyback seems the obvious top priority – it’s certainly clear from other responses (so far) that specific perspective is shared by many other Argo shareholders.

    Reply

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