#TGAR11 - EITA

Summary

The video discusses the performance of a fund, noting a drop in distribution from 1.35 to 1.12, which disappoints. The script speculates on the reasons behind this decline, including a significant cash injection that might have affected returns. It also covers the fund's strategy of investing in credit to maintain a well-remunerated cash position. The video further delves into the fund's high-risk investments, such as a substantial purchase in CPS H shares, questioning the fund's strategy and its alignment with the initial investment thesis. The host expresses concern over the fund's conservative distribution approach due to economic uncertainties and the impact of rising interest rates on sales and project completion.

Takeaways

• 😀 The speaker discusses a recent financial report, highlighting some surprising elements and expressing concern about the fund's performance.
• 😬 The Tigar fund's income dropped from 1.35 to 1.12, which is causing concern for investors, particularly due to unclear reasons behind this decrease.
• 📉 The Tigar fund's reports are often delayed, which complicates tracking its performance in real-time, unlike other funds that offer more timely data.
• 💸 Tigar is currently investing heavily in credit operations to maintain liquidity and generate better returns on idle cash reserves.
• 🏗️ The fund is involved in large-scale development projects, where profits will be realized gradually as these projects progress and sales are made.
• 📊 The fund projects a total profit of 3.6 billion BRL, but only 600 million BRL have been recognized so far, with the rest expected over the coming years.
• 💰 The fund's strategy involves keeping cash invested in credit operations to maintain liquidity for future project investments, although this can affect income distribution.
• ⚠️ The speaker expresses concern about Tigar's decision to invest 50 million BRL in the CPSH fund, which may not align with Tigar's core investment strategy.
• 💡 The speaker suggests that some of the fund’s recent investments, particularly in the CPSH shopping fund, might not be the best use of capital given Tigar's high-risk profile.
• 🤔 Overall, the speaker concludes that while the Tigar fund is following some logical strategies, there are areas of concern, particularly with income drops and potentially misaligned investments.

Q & A

What is the main topic discussed in the video?

The main topic is a detailed analysis of the Tigar fund, including its recent performance, distribution drops, and financial strategies.

Why is the speaker concerned about Coti in the video?

The speaker mentions that Coti is likely upset due to the drop in distribution from the Tigar fund, which went from 1.35 to 1.12.

What is the issue with the timing of the reports mentioned in the video?

The speaker highlights that reports for many funds, including Tigar, are often delayed, making it difficult to explain recent performance declines like the drop to 1.12.

Why did the Tigar fund's distribution drop to 1.12?

The distribution dropped due to various factors, including a large amount of cash held in reserves and allocations to credit operations, which have reduced the overall yield.

What is the strategy behind Tigar's allocation of funds to credit operations?

Tigar allocates funds to credit operations to ensure better remuneration of its cash reserves, thus maintaining a higher yield compared to leaving the money idle.

How does the macroeconomic environment, particularly interest rates, affect the Tigar fund?

Rising interest rates can negatively affect the performance of Tigar's projects, especially in the sales and development of real estate, as higher rates slow down economic activity and reduce sales.

What are Land Bank projects, and how do they affect Tigar’s performance?

Land Bank projects are undeveloped or dormant projects that haven't been activated yet. While they represent future potential, they currently do not contribute to Tigar's active earnings.

What concerns does the speaker have regarding Tigar’s credit operations?

The speaker is worried about the concentration of cash in certain credit operations. Around 10% of the cash is invested in a single operation, which could pose risks if that investment underperforms.

Why does the speaker criticize Tigar's investment in the CPSH fund?

The speaker criticizes the decision to invest 50 million reais in the CPSH fund, which focuses on shopping centers. This move is seen as inconsistent with Tigar's core strategy, and the speaker believes it doesn’t make sense for Tigar’s high-risk profile.

What is the speaker's overall view on Tigar's recent strategies?

The speaker is critical of Tigar’s recent strategies, particularly the drop in distribution and questionable investments like CPSH. They express frustration with the fund's management and the lack of clarity in some of the decisions.