Here’s why the Navigator Global share price surged 39% today

Get GrooveFunnels For Life While It Is Still In Beta For Free.

man's hand grabbing onto red ladder that is pointed towards sky

man's hand grabbing onto red ladder that is pointed towards skyman's hand grabbing onto red ladder that is pointed towards sky

The Navigator Global Investments Ltd (ASX: NGI) share price skyrocketed 39.35% in Thursday’s trading. That came on a day where the All Ordinaries Index (ASX: XAO) slumped 0.6%.

That will come as welcome news to shareholders, who watched the Navigator share price plummet 67% from17 February through 28 April. Since then, the share price of the alternative investment manager has regained 63%, though year-to-date Navigator shares remain down 31%.

At its current price of $1.93 per share, Navigator Global has a market cap of $312 million.

What does Navigator Global do?

Navigator Global Investments provides alternative investment management products and services to investors around the world via Lighthouse Investment Partners, LLC. Based in the United States, Lighthouse creates and manages global hedge fund solutions with a focus on diversification and absolute return.

What sent the Navigator share price flying today?

Navigator released an announcement to the ASX on Thursday morning stating that it had entered into a definitive agreement to acquire a portfolio of strategic investments from funds managed by Dyal Capital Partners. Dyal is a division of Neuberger Berman.

The portfolio is comprised of a diversified group of established firms with a history of delivering results through numerous market cycles. The firms manage a combined US$35 billion (AU$49 billion) of assets under management across 26 diversified investment strategies.

Management commentary

Navigator’s chair Michael Shepherd said:

We believe this is a compelling transaction with strong commercial logic. The acquisition is an important development in the evolution of Navigator. We have long targeted high-quality opportunities to grow and diversify our holdings to generate strong long-term shareholder returns. We are excited to be invested with these six excellent businesses.

Dyal has established themselves as the pre-eminent partner to growing alternative asset managers globally. We are excited to partner with the Dyal team and welcome their expertise as we grow the company over time.

Michael Rees, head of Dyal Capital, added:

Dyal looks forward to an ongoing involvement with Navigator as a long-term partner of the company. We are happy that these six managers will remain part of the Dyal ecosystem and view our indirect interest in the Lighthouse business as an attractive addition which is expected to contribute positively to our investment in the years to come.

Navigator stated that it expects to complete the transaction between December 2020 and January 2021. It remains subject to shareholder approval.

After gaining nearly 40% on the announcement, the Navigator share price will be one to keep an eye on throughout Friday.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why the Navigator Global share price surged 39% today appeared first on Motley Fool Australia.

Get GrooveFunnels For Life While It Is Still In Beta For Free.