STAGE 1 Value

“High net worth person” means:-
  • (a) an individual whose net worth is at least CI$800,000 or its equivalent in any other currency; or
  • (b)any person that has total assets of not less than CI$4,000,000 or its equivalent in any other currency.
“Sophisticated person” means a person:-
  • (a) regulated by the Authority;
  • (b) regulated by a recognised overseas Authority;
  • (c) any of whose securities are listed on a recognised securities exchange; or
  • (d) who:-
    • (i) by virtue of knowledge and experience in financial and business matters is reasonably to be regarded as capable of evaluating the merits of a proposed transaction; and
    • (ii) participates in a transaction with a value or in monetary amounts of at least CI$80,000 or its equivalent in any other currency, in the case of each single transaction.

STAGE 1 is the quantitative approach of appraising the value of a business. This can either be a net asset value (NAV) approach for investment holding companies, closed-end funds and investment trusts, or a going-concern approach where we estimate normalised earnings per share (EPS) and apply what we believe is a suitable multiple based on transactions in the sector or the valuations of other comparable listed companies. We seek a margin of safety by purchasing shares in companies, trusts or funds at a significant discount to our appraisal value.