What we learnt: IOOF, Link, a2 Milk, Sandon Capital

Source: Financial Review

Sandon’s banner year a story of patience

You’ve gotta love it when a plan comes together – and it’s even better when several plans come together at once, as activist value investor Sandon Capital found this year.

Its listed investment company delivered a return of 68.3 per cent before all fees and expenses for FY21, versus 30.2 per cent for the All Ordinaries Accumulation Index and 33.2 per cent for the Small Ordinaries Accumulation Index.

Several stocks where Sandon has agitated for change over long periods had transformative years, including Boral (taken out by Seven Group and up 96 per cent during FY21), Iluka (which rose 90 per cent and demerged the Deterra Royalties business after a long Sandon campaign) and Fleetwood Group (up 36 per cent after a number of operational changes).

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