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Bargain Shares: A Ben Graham contrarian value play

A cash-rich venture capital company that invests in biotechnology businesses is a classic Ben Graham value play
Bargain Shares: A Ben Graham contrarian value play
  • Net asset value (NAV) of £255mn includes net cash of £134mn at 31 December 2021
  • NAV per share declines 18 per cent to 198p share in 12-month period
  • Three portfolio exits since year-end and 12 new listed purchases made

Arix Bioscience (ARIX:116p), a global venture capital biotechnology focused investment company, remains the laggard in my market-beating 2021 Bargain Shares Portfolio. This reflects the bloodbath on Nasdaq that has impacted listed portfolio valuations.

At the end of 2021, Arix held seven listed stakes worth £63.3mn, an unlisted portfolio of seven holdings worth £54.6mn and £134mn (104p a share) of net cash. Since the financial year-end, three of the listed holdings have been fully exited and a fourth, LogicBio (US:LOGC), partially exited. The £8mn cash proceeds from those sales has been recycled into 12 new listed US investments worth £12.8mn.

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