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Tiptree Financial: 50% Discount To Book

Summary

Diversified financial services holding company available at a 50%+ discount to book value.

Complex balance sheet and obfuscated fiscal year 2015 operating results due to accounting charges, capital investments, and investment results.

Current valuation more than 5% below sum-of-the-parts liquidation value.

Management returns capital to shareholders annually via both a 1.75% dividend and share buy backs.

If you have personally invested your own or others capital for any length of time now, you may heard about or even directly experienced the infamous "holding company discount" applied by markets around the world to conglomerates and hold co.'s alike of all different sorts and sizes.

There are myriads of reasons for this, from the logical - type and nature of the holding company's underlying assets to the less rational consideration of lack of control or marketability. Whatever the case may be, such structures (which typically do not have any ongoing operations other than the management of assets) are poo-pooed in general.

Fortunately, lack of favor does not also entail lack of value as is visibly the case with Tiptree Financial Inc. (NASDAQ: TIPT). Tiptree is a diversified financial services holding company which operates in the insurance, insurance services, specialty finance, asset management, and real estate sectors through its majority interest in seven operating businesses.

Immediately some of the reasons Tiptree receives no analyst or investor favor are plainly evident:

  • Muddled corporate structure with Tiptree Financial being operated...

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