How successful is Interinvest?

Well, they manage about $2.5 BILLION dollars, but they're a private company so, for me at least, it's been difficult to answer that question.

One snap shot of the success of their investments comes from their website.

http://www.pbs.org/nbr/info/local-player.html?s=nbre07s3245q508

From this clip we can see that by 2009 Dr. Black had recommended:

Intrepid Mines...a BIG WINNER

Incyte Corp... also a BIG WINNER

Newmont Mining...eh... up but not fabulous.

But,then he also recommended Angiotech Pharmaceuticals (ANPI) and Allied Defence Group (ADG). Following that Oct. 2009 broadcast, both companies were eventually, BIG LOSERS. My question to an Interinvest insider yesterday (Sunday morning) was for an explanation of why they failed and were they losses for Interinvest.

What he said was that ANPI increased x3+ from Oct. 2009 as ANPI management renegotiated credit facilities, improved earnings, and discussed partnership opportunities for Quill. Unfortunately, their management subsequently failed to execute on a partnership strategy and the company entered into the Canadian version of chapter 11. He didn't say if Interinvest took a loss.

Whereas, he said that a take-over offer was made for ADG by Chemring group at a premium of over 100% from the level at which Dr. Black recommended it. He said that this implied that, on a fundamental basis it was a super-cheap stock. Shareholders had ample opportunity to sell into an active merger arb market following Chemring's offer. He said that it was on the public record that Interinvest liquidated. The deal was subsequently renegotiated and shares fell in value probably because of accusations that ADG employees had violated the Foreign Corrupt Practices Act.

I took from this that Interinvest got out of ADG with a profit.

So, from this tiny picture of some of Interinvest's investments, it would seem that they do ok.

Go Tyhee!