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NOVACYT
BlackRock are currently buying Novacyt.
But in which funds, and what does any of it mean?
It means a lot, so...
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#NCYT #ALNOV #NVYTF #GDR #AVCT #SNG #SYME #QGEN #FAB
BlackRock are currently buying Novacyt.
But in which funds, and what does any of it mean?
It means a lot, so...
Thread
#NCYT #ALNOV #NVYTF #GDR #AVCT #SNG #SYME #QGEN #FAB
First thing to understand is that BlackRock is massive. If you're an investment professional you already know how complex this company is.
The staff who work inside it barely understand anything outside of their own team and day to day.
Funds, client services, tech platforms..
The staff who work inside it barely understand anything outside of their own team and day to day.
Funds, client services, tech platforms..
We're only interested in the funds though, because we know that a number of the funds have been buying Novacyt for the past 3 months.
We saw that because they publish quarterly and we had a look at their positions as of September.
We saw that because they publish quarterly and we had a look at their positions as of September.
Back then they held Novacyt in 3 funds:
Smaller Companies Ordinary Fund - 475k shares
Throgmorton Trust Fund - 355k shares
Pension Fund - 30k shares
Smaller Companies Ordinary Fund - 475k shares
Throgmorton Trust Fund - 355k shares
Pension Fund - 30k shares
Yesterday you had an RNS telling you that BlackRock were buying Novacyt and had crossed the notification threshold and currently own 2.5 million shares, over 3.5% of the company.
https://www.londonstockexchange.com/news-article/NCYT/holding-s-in-company/14777977
https://www.londonstockexchange.com/news-article/NCYT/holding-s-in-company/14777977
That happened around the same time the MSCI Index deadline passed, and Novacyt appeared on a BlackRock iShares ETF.
This was only around 100k shares that were automatically purchased for that fund.
This was only around 100k shares that were automatically purchased for that fund.
If you find that part on MSCI Indices confusing, just move on for now. It's not the focus here.
We want to look at the other 1.4 million shares BlackRock has accumulated during October and November.
We want to look at the other 1.4 million shares BlackRock has accumulated during October and November.
First, let's get this out of the way - the Small Company Ordinary Fund banked some profits in October and now hold around 300k shares.
The Pension fund, no clue
Let's move on again.
The Pension fund, no clue
Let's move on again.
You survived that and made it to the good bit.
BlackRock's Throgmorton Trust
is one of their most innovative and forward thinking actively managed funds, currently run by
BlackRock's Throgmorton Trust
is one of their most innovative and forward thinking actively managed funds, currently run by
And is even floated on the FTSE. Tickr #THRG
Check the performance.
Ridiculous. It just keeps growing since 1996.
But how?
Check the performance.
Ridiculous. It just keeps growing since 1996.
But how?
It goes back to the Trust's management.
They constantly read the wind and look for industry disruptors in technology, financials and healthcare. They typically stay away from minerals, oil and gas are even usually averse to biotechs.
They constantly read the wind and look for industry disruptors in technology, financials and healthcare. They typically stay away from minerals, oil and gas are even usually averse to biotechs.
Listen to Dan explain it for a few minutes. https://citywire.co.uk/investment-trust-insider/news/blackrock-throgmorton-we-want-to-own-disrupters/a1124238
They go long on the disruptors and short on the victims of that disruption.
Even though they're usually averse to biotechs they're buying Novacyt and currently hold over 1.1 million shares in the Throgmorton Trust fund with most purchased in November over 700p.
Even though they're usually averse to biotechs they're buying Novacyt and currently hold over 1.1 million shares in the Throgmorton Trust fund with most purchased in November over 700p.
The timing there is of course interesting to you because you saw Novacyt's PDMR purchases by the CEO and those at board level also all buy in around the same time.
Fund managers talk to the companies they wish to own, and clearly November discussions were very interesting.
Fund managers talk to the companies they wish to own, and clearly November discussions were very interesting.
We're retail, so we don't find out how interesting until after it happens
So what is the BLK Throgmorton Trust? Well this Trust and the BLK Small Companies Fund are actually competitors and the two best small company funds in the UK.
So what is the BLK Throgmorton Trust? Well this Trust and the BLK Small Companies Fund are actually competitors and the two best small company funds in the UK.
They compete aggressively to outperform each other - because returns means more client money.
BlackRock doesn't care which does better.
They own both
BlackRock doesn't care which does better.
They own both
But it matters to the managers and their bonuses.
Why is Throgmorton doing so good though? Well they're basically a hedge fund now. They can be aggressive and short stocks they think are
Why is Throgmorton doing so good though? Well they're basically a hedge fund now. They can be aggressive and short stocks they think are
Right!
Pretty cool for a typically boring fund.
If you like your pubs, you'll probably begrudgingly respect them - they shorted the pants out of the pub industry recently and made a packet.
Sorry pub goers. Should just buy a
instead anyway.
Pretty cool for a typically boring fund.
If you like your pubs, you'll probably begrudgingly respect them - they shorted the pants out of the pub industry recently and made a packet.
Sorry pub goers. Should just buy a
instead anyway.
Okay so this is where most of the Novacyt shares within BlackRock are at the moment. Over 1.1 million in Throgmorton's fund and over 300k in the Smaller Co. fund. 100k in the iShares MSCI fund, purchased automatically by tracking the MSCI index.
We're still missing 900k shares
Somewhere in BlackRock another fund is buying up a ton of our Novacyt.
What fund it is, and who is managing it?
Your guess is as good as any.
For now
Somewhere in BlackRock another fund is buying up a ton of our Novacyt.
What fund it is, and who is managing it?
Your guess is as good as any.
For now
These shares are in safe hands. BLK see Novacyt as a high growth disruptor for the year ahead or longer.
So do the long term holders here.
We expect decentralised testing through VersaLab to pivot into health screening in the UK, USA and EU.
So do the long term holders here.
We expect decentralised testing through VersaLab to pivot into health screening in the UK, USA and EU.
And the wide range of covid tests to bolster revenues for the next few years as the rollout of decentralised testing grows and expands into new areas like Transplant diagnostics.
Some investors (myself included) take a longer term view which is more oncology focused.
Some investors (myself included) take a longer term view which is more oncology focused.
We're in a quiet period, where Novacyt is working around the clock on new product rollouts, new 3 to 5 year strategies, government work and meeting with institutional investors. A mass hiring scheme this year has more than doubled the debt-free company - pushing 100 hires in 2020
Turn the screen off for a few sessions - but don't go too far.
Who knows what's about to drop next
Who knows what's about to drop next
