iCapital.biz Bhd (ICAP, 5108) year 2011 Annual Report

ICAP,  managed by Mr. Tan Teng Boo (陈鼎武), which is the one and only closed-end fund in KLSE, has just published its 2011 Annual Report.

As disclosed in the annual report, this is the current portfolio of ICAP as at 22 June 2011.

ICAP has finally sold out all MIECO (5001) and removed it from the portfolio. If you want to criticize ICAP, this is the failed investment which has caused a 59.22% or RM1.2 million lost to its share owners. MIECO was sold out at an average price of about RM0.5257 (RM857,876/1,632,000), which was not a good timing and near its lowest price. MIECO has once gone up to RM0.83 in March 2011, and even gone up to RM0.97 one day before the 6th AGM of ICAP held last year. In fact, during the AGMs of past few years, share owners had been asking Mr. Tan Teng Boo about why MIECO was still kept in the portfolio despite horribly performed in its EPS as well as share price.

To my surprise, within the year, ICAP has bought and also sold 1,360,000 units of COASTAL (5071), making a profit of 12.12%. Why COASTAL is such a short term investment/speculation, despite its fundamental still looks good?

You will notice that PADINI (7052) has increased by 5 times in the portfolio. Actually, this is due to share split exercise of PADINI. ICAP has not changed its holding in PADINI since 2008.

ICAP currently only invested in 10 counters only, which is the lowest number since inception. The cash position has increased to RM115 million. This shows Mr. Tan remains cautious to the investment environment, especially when he quoted John Donne's "no man is an island, entire of itself" in this annual report.

Anyhow, despite the failed investment in MIECO and lowering of invested position, the NAV of ICAP still keeps on climbing and is now at its historical high. This shows that overall, ICAP is still a well performed closed-end fund, and Mr. Tan remains a remarkable fund manager trusted by some 3,200 share owners, including foreign financial institutions such as The Bank of New York Mellon, Credit Suisse, etc.

I have produced the table below to show the change in portfolio of ICAP from 2006 to 2011.

MSC (5916) was highlighted during the 6th AGM of ICAP last year, and ICAP has bought in another 1 million shares of MSC after that. SURIA (6521) was another highlighted counter during last AGM, and ICAP has also increased its position in this counter. However, the share price and trading volume of these 2 counters still remain dull until now.

The NAV performance of ICAP over the year is mainly contributed by blue chips such as F&N (3689) and PETDAG (5681) bought a few years ago.

Well, see you in ICAP 7th AGM and 2011 Investor Day on 1 October 2011.
Disclaimer: This article is intended for sharing of point of view only. It is not an advice or recommendation to buy or sell any of the mentioned stock counters. You should do your own homework before trading in Bursa Malaysia.