The MFF Capital Investments Ltd (ASX: MFF) share price has had a bumpy week – going from $3.15 last Friday to $2.96 yesterday and has flattened out at $3.02 at the time of writing. Although this was to be expected considering the global share market turmoil we have had this week, it nonetheless highlights the glories of being able to strike while the proverbial iron is hot.
I say this because, in MFF's latest weekly market update on its Net Tangible Assets (NTA), the company reported that NTA per share came in at $3.37 – giving MFF shares a nice 10% discount to what they are actually worth on today's prices. So is MFF Capital a screaming buy today? Let's take a deeper look.
Who is MFF Capital?
MFF Capital is an ASX Listed Investment Company (LIC) and was formerly known as Magellan Flagship Fund. It is run by one of the co-founders of the Magellan Financial Group Ltd (ASX: MFG) – Chris Mackay. Although Magellan and MFF have now somewhat parted ways, the two companies still share the same investment philosophy that has led to Magellan's share price knocking out the lights this year on the back of impressive investment performance and massive Funds Under Management (FUM) growth.
MFF aims to invest in quality companies from a value standpoint across the Australian and international markets, although at present MFF is highly concentrated in US stocks. Some of its top holdings include Visa, Mastercard, Bank of America and Alphabet (Google).
For me personally, the fact that the portfolio manager Mr. Mackay has a substantial investment in MFF of over 20 million shares is of great comfort – I like to see portfolio managers put their money where their mouths are.
Is MFF a screaming buy? – A Foolish Takeaway
Given MFF shares were worth $2.66 a year ago, $1.83 three years ago and 60 cents per share ten years ago, I think MFF has shown that it has what it takes to reward shareholders. The company also pays a small but growing dividend – recently increased by 33% to 2 cents per share. Given MFF aims to invest in some of the best companies in the world, does this mean that you can do the same at a 10% discount? Yes, in my opinion it does.
So is MFF a screaming buy? Well, I'm not much for screaming, but it's certainly a buy in my eyes.
